Empirical Analysis on Foreign Direct Investment and Economic Growth of China

摘要

Based on the time serial method, this paper makes quantitative analysis on the relationship between foreign direct investment(FDI) and economic growth in China . It shows long-run aggregate supply effect is bigger than short-run aggregate demand effect of FDI to GDP in China. FDI has hysteresis effect to economic growth. Our country should increase the degree of attracting foreign investment and the level of opening up.