Research On The Relationship Between Foreign Investment And Economy Growth Of Shangdong Province

The relation between FDI(Foreign Direct Investment)and Economic growth have been continuously paid deep attention by the economic academia. Positive research has already indicated that FDI flows into developing countries is benefit to economic growth of the host countries. Since the reform and open policy, China has grown out of nothing using the foreign investment, from solely to varieties;also it already has formed the patterns of maturity omni-directionally,multi-level and wide domain.Shandong Province as an eastern coastal province,it has always stands in the front row of the whole nation,in terms of the amount of FDI. Reforms and opening-up to the outside world for twenty years, Degree of shandong's reform and opening has been increasingly expended. Economy extroversion has reached 36%, export - oriented economy has become the main factor to the growth of the whole province.With the quick pace of binging in FDI,FDI plays an important role in economy of Shandong province. Therefore,how to utilize the foreign investment is significative.This paper exprounds the relationship between FDI and economy growth with the theory of FDI. On the foundation of the theoretical analysis ,using the related positive analysis of FDI and combining quality analysis and quantity analysis together.It makes quantity analysis based on the quality analysis according to mass of data and chart.This thesis firstly illustrates some theories related to FDI,then analysing the FDI condition in Shandong Province. It explains the characteristics of foreign investment at present. Based on a large number of statistics, materials, we comprehensively examined the relationship of FDI and economic growth of Shandong Province from GDP, industry structure and areas, getting the positive result between foreign investment and economic growth of Shandong Province,at the same time pointing out the contribution of FDI is low, FDI makes contributions to the progress of industry of Shandong Province, it has the problem of region differences in the process of utilizing FDI.At last,according to the result of research, it points out the problems now existing in the process of FDI accelerating of economy growth of Shandong Porvince :imbalance of industry and area structure influnces the safey of industry in Shandong Province, investment environment needs to be standardization, contribution of foreign investment is partially low. At the same time, bringing forward relative policies and suggestions on how to exert the effect of FDI: improving the structure of indrustry and area, improving investment environment, enhancing the contrubutions of foreign investment.