The influence of OFDI on economic growth: A quantitative assessment for China and EU

摘要

Based on the panel data of Chinese outward foreign direct investment (OFDI) to 26 EU contires from 2003 to 2010. Using Cointegration, error correction model, impulse response function and the GLS method, this paper analyzes the effect of OFDI reverse technology spillovers (RTS) from the European Union on China's economic growth, and finds:(1) whether from short-term or long-term perspective, the role of RTS on promoting China's economic growth is proved, but the effect size is less than FDI;(2) In the short term, the return form OFDI to EU is insufficient, thus affecting China's inward investment;(3) In the long run, the effect gap between OFDI and FDI is narrowing, especially after the economic crisis this trend is more obvious;(4) Developed countries have a greater impact on China's economy than developing countries.