The Analysis of Co-integration on FDI and the Difference of Economic Growth in the Eastern and Western Regions of China

摘要

Based on the theory of co-integration test, this paper analyzes the quantitative relation between FDI and economic growth in the eastern and western regions. The result shows that there exists long-term steady equilibrium relation between FDI of the eastern and western regions and economic growth. FDI in the eastern region contributes more to economic growth than FDI in the western region, which shows FDI is one of the reasons resulting in the widening economic growth gap between the eastern and western regions. In the future, the western region should strenthen absorbing FDI, and advance the level of opening.