The Study Of The Impact Of Foreign Direct Investment On Jiangsu Province’s Economic Development

As a part of social investment, FDI has being a hot spot of research by scholars for its vital effects on economic growth. Such research analyzed the relationship between FDI and economic growth with different prospective and function mechanism, and came up with massive relative theories. China has became the biggest foreign capital inflow country among all under-developed countries, thus, the analysis of such topic could be more important and practical.Jiangsu Province, as a big economic province of China, shares a leading role on both the scale of GDP and the level of FDI inflows. Foreign direct investment has become core force of Jiangsu province economic development. Affected by this change in investment sources is particularly prominent, it increases the overall number of international trade in Jiangsu Province, to provide a lot of financial support, to promote the adjustment of industrial structure and upgrading, creating a lot of jobs and so on. Therefore, for the current macroeconomic situation and the status of foreign direct investment, researching the impact of foreign direct investment on economic growth in Jiangsu Province has an important significance theoretical explanation and empirical analysis of the way.Based on the use of foreign direct investment in Jiangsu Province in practice and previous studies, first theoretically analyzes the actual situation of Jiangsu Province. Next, by setting up multiple regression models, this thesis will analyze foreign direct investments’ economic effects on whole Jiangsu Province from time series vision. Then, we will select four typical cities(Nanjing, Suzhou, Wuxi, Changzhou) to analyze the economic effects separately. This thesis will collect data of foreign direct investment and economic growth from 1999-2013 to analyze foreign direct investments’ economic effects with time series and panel data models. The results show that foreign direct investment and Jiangsu province economic growth has a positive correlation, but the effects vary in different economic indexes. Moreover, the economic effects show differences among four cities. Finally, according to the empirical analysis results, the thesis will give corresponding countermeasures suggestions combined with the existing problems.