The Real Estate Industry Association Study Of Fdi Effect On Economic Growth In Jiangsu

As the main way of international capital flows, the effect of FDI on economic of the host country has been a hot topic in academic world. Along with entering into the largest part of industries of national economic, the stature of FDI is rising in national economic, and FDI significantly affects every link and aspect.Jiangsu is one of the most rapidly developing of open economy provinces, and FDI has become an important foundation of economic growth of Jiangsu. The real estate emerges as acceleration of development of market economy, the pace of industrialization and urbanization. With a large number of the upriver and downstream of correlative industries, the real estate has become one of the pillar industries stimulating economic growth of Jiangsu. At present domestic research of FDI is mainly on FDI acting on the overall economic of Jiangsu, but comprehensive and systemic empirical analysis on the contribution of FDI of the real estate to the economic growth of Jiangsu is few in number.Under this background, this paper is from a vision of FDI of the real estate of Jiangsu and focuses on the correlation between FDI of the real estate and the economic growth of Jiangsu. According to the existed theory of FDI and economic growth and current related research situation at home and abroad, we analyze present situation of FDI of the real estate of Jiangsu, which is made from four aspects:total quantity and scale, investment channels, financial sources and investment pattern, by comparative analysis and logical reasoning, then analyze the cause of FDI migrating into the real estate. Next, we put emphasis on the analysis of factors of FDI of the real estate promoting economic growth of Jiangsu in order to provide basis of variable selectmen for establishing model. The factors include fives aspects:promoting development of correlative industries, enhancing consumption level, increasing employment opportunities, increasing fiscal revenue and releasing fund pressure of the real estate. With time series data (1998-2009), a multi linear regression model is set up on the basis of input-output model to analyze influence of FDI of the real estate acting on economic growth of Jiangsu. The result shows that FDI of the real estate could markedly promote economic growth of Jiangsu. According to the result of theoretical and empirical analysis, we put forward policy suggestions on attracting bid for invite investments and making use of foreign capital reasonably:firstly we should optimize the structure of foreign funds and promote construction of modern industrial system; secondly we should make adjustment in industry policy and regulate market access of foreign real estate; thirdly we should control strictly links of exchange and supervise the flow of foreign fund into and out of the real estate; fourthly we should put forward new methods and measures for absorption of foreign investment, expanding the area of making use of foreign capital; fifthly we should optimize investment environment for attracting foreign investment.