Empirical Study on Influence of Foreign and Domestic Capital on Economic Growth in Hubei

摘要

The amount of foreign and domestic capital in Hubei province has increased a lot in recent years. This paper uses econometrics method, chooses three variables: Gross Domestic Product, Foreign Direct Investment and Domestic Investment to study the influence of foreign capital and domestic capital on economic growth in Hubei. We find that the affect of domestic capital on economic growth is greater than that of foreign capital. Assume other variables are stable, GDP will increase 0.643% if Domestic Investment increase 1 % and GDP will increase 0.238% if FDI increase 1%.