Does Foreign Direct Investment Promote Economic Growth?Evidence from Guangdong,China 1979-2008

摘要

This paper examines the causal relationship between foreign direct investment(FDl) and economic growth in Guangdong,China,using annual data for the period of 1979-2008,by conducting time-series estimations through ADF unit root tests,cointegration tests, error-correction analyses and Granger causality test.The results suggest that FDI does not appear to Granger-cause economic growth,while economic growth affects FDI,which means that some studies have overestimated the positive effect of FDI on economic growth,and underestimated the influence of economic growth on FDI.