A Study On The Relationship Between FDI And Economic Growth In The Pearl River Delta Region From The Perspective Of Financial Development

In recent years,with the progress of the world economic becoming deeper and deeper,Chinese plays a more important role in the world.In this situation,the FDI flows into our country increasing heavily,therefore,it should be paid more attention when referring to the economic growth.There are amount of data suggested that Chinese FDI has increased about 10 percentage per year,while GDP is about 7 percentage per year at the same time.Therefore,FDI has a positive effect on economic growth,however,many scholars use the method of empirical research,finding that there are some dispute in the grow of the economic.So scholars begin to explore which factors has affected the role of FDI on economic growth,it is not until 21st century that financial development was became a new perspective.But many researches are focused on the view of country or the south>east etc.There are lack of study of the specific area.On the one hand,this article is on the view of the Pearl River Delta region,for the purposed to enrich the financial development or the relationship of the FDI and economic development.On the other hand,if the Pearl River Delta region can build the advantage to remote the development of the Guangdong Province.This paper summarizes the relevant literature from home and abroad firstly.Secondly,it comes to the define of the FDI、economic growth and financial development,then make a description of the current situation of the Pearl River Delta.Thirdly,establishing the production function to combine the indicators of economic growth,FDI and financial development were selected.E-Viwes5.0 software from the year 1995 to 2015.The variables should be smoothly and cointegrated.The relationship between the test and the Granger causality test.The empirical analysis is divided into two parts:one part is financial markets under the influence of FDI and economic growth;while the other part is in the financial market under the influence of FDI and economic growth.Through these studies,some policy proposals have been put forward to optimize foreign direct investment and improve the financial market,as well as to promote economic growth in the Pearl River Delta region.As a result,when it not comes to the factor of financial market,the FDI flows into the Pearl River Delta can promote the economic growth,but the effect is not obvious.When adding to the factor of financial market,the interaction between financial development scale and FDI restrains economic growth,but this does not completely curb the role of FDI in economic growth.The efficiency of the develop of the finance and FDI restrains can increase the economic,but,there is a threshold that restricts the effect of FDI on economic growth.Therefore,this paper concluded that in the promotion of economic growth in the Pearl River Delta region,we are not only paid attention to increase the inflow of regional investment,but also to focus on the efficient development of financial markets.