Fdi And Economic Growth - An Empirical Analysis Of Jiangsu Province

Since 1990 Foreign Direct Investment (FDI) has contributed a lot to economic growth in Jiangsu. Not only the impact of FDI on GDP growth, but also the spillover effect of FDI on two important factors which can affect economic growth: capital and technology is demonstration. This issue presents empirical evidence on the impact of FDI inflows on GDP growth, on domestic investment and on R&D. The results indicate that in Jiangsu there has been strong crowding in of domestic investment by FDI, and we find positive effects of FDI on GDP growth and the number of patent applications. In addition we assess FDI does Granger cause GDP growth. At last we bring forward some suggestions to adjust the policy of utilizing foreign capital in new period.