The Impact Of Two-way FDI On My Country's Economic Growth

Since the reform and opening up,China's economy has maintained high growth,and the total economic total is second to the United States,the second largest in the world.According to the 2016 World Bank's GDP data report from various countries in the world in 2016,the global total of GDP(GDP)amounted to $74 trillion.Among them,the total number ranked first in the United States accounted for 24.32%;the second ranking was China,and the total amount accounted for 14.84%.Because of this,the problem of China's economic growth has always been the focus of attention of scholars.Along with the process of economic globalization,economic exchanges between countries is the rapid development of international direct investment is an important way of economic growth,either as host or investment in the country,had a significant impact on international direct investment in each country's economic growth.In recent years,the scale of foreign direct investment(IFDI)and foreign direct investment(OFDI)in China has increased rapidly.At present,our country's economic form is generally good,but the long-term rapid development also brings many problems.For example,the development mode is extensive and backward,and the economic structure is irrational.Economic development is facing downward pressure,regional development is not balanced,and market and resource and environment need to be improved urgently.Therefore,at this stage,we will further understand how IFDI and OFDI affect China's economic growth and the specific differences in different regions.It helps IFDI and OFDI play a positive role,and has great practical significance for the balanced and sustainable growth of China's economy.This paper adopts the method of combining theoretical research with empirical research.First of all,the theory of international direct investment and economic growth theory and relevant domestic and foreign literature review are reviewed respectively.At the same time,the development and status of OFDI and IFDI in China are analyzed.Secondly,with the help of existing research literature,the transmission mechanism of IFDI and OFDI to economic growth is constructed.To clarify the logical relationship between IFDI and the economic growth of the host country,the OFDI and the home country.Finally,the empirical part is based on panel data of 31 provinces,municipalities and autonomous regions in China during 2004~2016,and examines the impact of two-way direct investment and its interaction effects on China's economic growth.The results show that FDI and FDI both significantly promote China's economic growth,and the interaction effect of the two factors has a significant positive impact on economic growth.By further inspection found that two-way direct investment has significant regional differences on the influence of China economic growth,economic growth effect of Middle East foreign direct investment is less than the western region,while foreign direct investment and its interaction with the effect of foreign direct investment on the economic growth of the positive effect is greater than the western region.In addition,China's investment level,labor input,technological innovation,export trade and government expenditure also have a significant role in promoting economic growth.