Study On The Spillovers Of FDI And Economic Growth Of China

From reform and opening, a great quantity of FDI flowed into China and stimulated the fast growth of Chinese economy, but it also turned worse district economy in the meantime of unbalance development, which at present become extremely outstanding antinomy of Chinese economy and society development. Along with deep opening ,the relationship between China and the world is becoming closer day by day , the margin is also contracting gradually, the relation between FDI's spillover effect and the economic development of the whole China is also taking place variety, how to make economy keep on a development to become at present the economic educational circles topical discuss .So, what influence has FDI's spillover effect make to the economy of everyplace ?Is the degree of economy development advantageous to FDI's spillover effect ?According to these problems, this text carry on a substantial evidence between the relation of economic growth and FDI's spillover effect .This study took economy growth theories as foundation, divided 30 provinces or cities into three districts: east district, medium district and west district. And form panel data to make line regress analysis of our country according to the data 1997-2005, form time sequence data again to carry on Granger Causality Test. Then make line regress analysis respectively of east district, medium district and west district, in which east district contains 12 cities, middle district 8 cities and west district 10 cities. After that carry on Granger Causality Test of these three districts. This will help us to take comparative analysis of different effect of FDI spillovers and economic growth between country and districts, and also the relationship of them.The empirical study indicated that FDI's spillover can promote China's economic growth, and high speed economic growth also is advantageous to the exertion of FDI's spillover. High quality talent is the principal part of absorbing or digesting the FDI's spillage effect, which finally become the principal of innovation. The Middle and the West should actively accept the industrial transfer of the East while absorbing a great deal of FDI. The domestic investment is always the main motive of promoting an economic growth. The exaltation of the technique creative ability contributes to absorbing a FDI spillage effect through which to carry out fast economic growth; the road of opening outward has prominent function to China's economic growth which need be stand down constantly.In the end, we put forward some suggestions on how to absorbing FDI and exerting the effect of FDI's spillover.