The Impact Of Foreign Direct Investment On Shandong's Economic Growth

Foreign direct investment as the main form of international capital flows,plays an increasingly important role in the economic globalization,the economic growth of Shandong province is closely related with foreign direct investment.Shandong Province as a coastal province,the competitiveness of the economy since the beginning of the 21st century has consistently ranked sixth in the country,the foreign direct investment in the use amount of self since the reform and opening up to the outside world is also among the nation,foreign direct investment(FDI)inflows effectively compensate for the economic growth in savings and other investment gap become an important force driving the economic growth of Shandong Province.This paper is based on the impact of foreign direct investment on economic growth.According to the new classical economic growth theory,capital increase,technological progress and industrial structure upgrading is the main source of economic growth,this paper analyzes the impact of FDI on capital,industrial structure upgrading,technology spillover.From the development of foreign direct investment in Shandong Province,the change and development characteristics of foreign direct investment in Shandong province were compared,and the situation of foreign direct investment in Shandong province was compared.On the basis of this,the effect of FDI on the economic growth of Shandong is analyzed,that is,the influence of foreign direct investment on the capital,industrial structure and technology spillover of Shandong province.Through the establishment of the model,using unit root test,co integration test,Grainger test method,the foreign direct investment in Shandong province capital,industrial structure,technology spillover effect of empirical analysis and testing,the conclusion that foreign direct investment can make Shandong province capital increase,promote industrial structure optimization and upgrading,and can get technology diffusion through various channels,while foreign direct investment will also bring some negative impact for example will lead to capital extrusion,will lead to industrial development is not balanced.Finally,the paper puts forward countermeasures and suggestions for the problems in the process of utilizing foreign direct investment in Shandong Province,and to promote the economic growth of Shandong province.