The Relation Between Foreign Direct Investment And The Economic Growth In Sichuan Province

With three decades of reform and opening up policy development in the construction ofChina’s socialist market economic activity, foreign direct investment (FDI) has been the mainway for countries to use foreign investment, China’s economic development has played aprominent role. Researching foreign direct investment in China’s economic development hasbecome a hot spot. Some scholars proposed that FDI is one of the reasons of the GDP growth,GDP growth is not the absorption of FDI reasons; some scholars take the opposite view: GDPgrowth is the absorption of FDI reason, but no significant positive effect on FDI for economicdevelopment, even negative effects; but some scholars feel that the FDI and GDP growthreinforce each other and promote each other. As a western province, how the relationship ofthe Sichuan Provincial Economic and Foreign Direct Investment, as well as how to Sichuanwith its own characteristics, to solve the problems of utilization of foreign capital, and tobetter promote economic development in Sichuan Province? This is precisely the purpose ofthis paper.The first part is an introduction. It contains the background and significance of this study,the main content and the paper’s structure. It introduces the research methods and explainsthe related concepts. Departure from the background of the current economic development inSichuan Province, a brief introduction to the significance of FDI on economic development;arrangements gave a brief introduction to the article content; an explanation of the meaningof the concept of focus in the article.The second part of the body of the text is divided into four chapters. The paper’s firstchapter contains Foreign Direct Investment Theory and Related Research, covering thetheoretical basis of this study. The first is an overview of foreign direct investment theory,through the review, describes the development process and the mainstream view of FDItheory. Second, is the study of the relationship between FDI and economic development atinland and abroad. Analysis made by scholars, indicating a role in promoting FDI oneconomic.The second chapter is the status of foreign direct investment in Sichuan Province. Thefirst analysis is the current situation of foreign direct investment in Sichuan Province.Describe the development of Sichuan of FDI. Compare the status of the twelve western provinces. And then analyze the impact of FDI on the economy in Sichuan. Followed byanalysis of tertiary industries in Sichuan Province’s GDP, Sichuan Province, FDI in industrialdistribution of FDI economy of Sichuan Province. Finally, the preceding analysis, SichuanProvince, the problems and deficiencies in the FDI: FDI size and some eastern provincesincluding the introduction of relatively low compared to imbalances in the distribution in theSichuan region of FDI investment structure is irrational, and Sichuan Province hardware andsoftware facilities to attract foreign investment.The third chapter is the empirical part. First used co-integration analysis method,Sichuan GDP and FDI correlation analysis results show that Sichuan has a strong correlationbetween GDP and FDI. Foreign direct investment can promote economic development. Andthen analyze the relationship between foreign direct investment and economic growth inJiangsu province, Guangdong province, Shanghai province and Zhejiang province. Theresults show that the eastern province of FDI and GDP has a stronger correlation thanSichuan. Finally, analyze the relationship between Sichuan industrial structure and FDI. Theempirical results show that there is a strong correlation between FDI and tertiary industries.Empirical analysis of this chapter can be concluded FDI to promote Sichuan’s GDP growth;the DI role in promoting Sichuan’s GDP is lower than the developed eastern provinces;impact on the role of FDI in Sichuan industrial structure.The fourth chapter is to enhance their recommendations to promote the role of FDI inSichuan’s economy. Analysis of the previous two chapters we learned that: by the absorptionand utilization of foreign capital, can promote economic development in Sichuan, whileoptimizing the industrial structure, so we should make great efforts to attract foreigninvestment. However, the use of foreign capital there are inadequacies in this chapter fromthe foreign capital scale is relatively small imbalances in the distribution of foreigninvestment in Sichuan, the investment structure can still be optimized, investmentenvironment and construction to make policy recommendations.The third part is the conclusion of article. Brief summary of this article and view, anindication of the inadequacies of the issue requires further study.