An Empirical Study On The Effect Of FDI On Heilongjiang Province's Economic Growth

At present, Economic Globalization has become the trend of the world economic development. Many studies have proved that FDI plays a more and more important role in promoting the Economic Globalization. As a member of the WTO, China has close relationship with the world economy. FDI plays an important role in promoting the growth of China's economy.Heilongjiang Province Locates in the north of China. Because of the restrictions in location, Heilongjiang Province has not attracted a lot of foreign direct investment. However, since the 1980s, with the policy of opening to the outside world, Heilongjiang Province has attracted much foreign direct investment. FDI begins to play an important role in promoting the growth of Heilongjiang Province's economy. My paper aims to do researches on the relations between FDI and economic growth in Heilongjiang Province. First, I introduce the overview of Heilongjiang Province's FDI. Second, I make the way of qualitative analysis and quantitative analysis contacted together to do researches on the economic effect which FDI has in Heilongjiang Province. From the theoretical analysis, we can see that FDI has capital formation effect, technology spillover effects, effect of industrial upgrading, trade effect and employment effect, which indirectly promote the growth of economy. Consequently, in my paper , I make an empirical study on the capital formation effect, employment effect and trade effect which FDI has have in Heilongjiang Province. In the empirical analysis, I use Least-squares method, ADF Unit Root Test, Cointegration Test, Residual Smooth Test and so on. The results of empirical analysis prove that FDI has played an important role in Heilongjiang Province's economic growth. At last, according to the results of econometric analysis, I propose some advice on how to promote the growth of FDI and how to use the FDI more effectively.