The Empirical Analysis. Of Fdi On The Economic Impact Of Shandong Province

Shandong province, as a developed district of China, has a obvious location advantage to attract foreign direct investment (FDI). Since the Open and Reform of China, Shandong province has started to absorb foreign direct investment. With the vast flow of foreign direct investment, the economy of Shandong province develops fast. Under this condition, people begin to pay more and more attention to the relation between FDI and economy of Shandong province. It is said that FDI plays a great role on economy of Shandong province, such as pulling GDP growth, putting of employment pressure, increasing capital stock and boosting import and export.In order to explain the influence of FDI on economy development of Shandong province, author founds econometrics model to do demonstration study, adopting annual data from 1991 to 2005.The influence is extensive. This paper only concerns three aspects, namely GDP, fixed investment and import and export. In quantitative analysis, elasticity coefficient helps a lot to clearly show the influence extent. In the end, this paper proposes some advice for further absorbing and utilizing FDI of Shandong province on demonstration analysis.