A Research on the Relationship between FDI and Jiangsu’s Regional Economy Disparity

Abstract

Through reading and summarizing relevant articles, the authors analyze two different kinds of effects that FDI influence the regional economy. Location and digesting ability reflects such non-equilibrium. By using regression analysis, the authors discover, in south Jiangsu, which the unit FDI increase contributes most to the GDP development, with middle and north Jiangsu lagging behind. The regression coefficient is 1.198, 0.429 and 0.572 respectively. Considering the index of digestion ability, unit FDI increase and unit GDP contribution rate still share strong relevant relationship. However, the coefficients change. The effects that FDI stimulate GDP growth are weakened, been made up by the endogenous ability. The granger test shows that in south Jiangsu, there exists a cycle of accumulative effect, namely both the FDI increase and the GDP growth do well with each other. However, in the rest of Jiangsu province, such effect is not obvious. Considering the elements of location and digesting ability, this paper offers tactics for Jiangsu for a better coordinate of future development.

Share and Cite:

B. Wang and C. Wang, "A Research on the Relationship between FDI and Jiangsu’s Regional Economy Disparity," Technology and Investment, Vol. 3 No. 3, 2012, pp. 138-142. doi: 10.4236/ti.2012.33018.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] X. Han, “A Research on the Relationship between FDI and the Development of Jiangsu Province,” Modern Business Trade Industry, No. 11, 2008, pp. 102-104.
[2] Z. Wang and Y. J. Gu, “The Positive Impacts of Foreign Direct Investment on China’s Economic Development,” Journal of Kunming University of Science and Technology, No. 5, 2005, pp. 41-45.
[3] J. Weiss and H. Jalilian, “Industrialization in an Age of Globalization: Some Comparisons between East and South East Asia and Latin America,” Oxford Development Studies, Vol. 32, No. 2, 2004, pp. 283-307. doi:10.1080/13600810410001699993
[4] H. Cheng, “Panel Data Analysis—Advantages and Challenges,” Test, Vol. 16, No. 1, 2007, pp. 1-22.
[5] H. K. Wei, “Effects of Foreign Direct Investment on Regional Economic Growth in China,” Economic Research, Vol. 4, 2002, pp. 19-25.
[6] Y. R. Li, “FDI Spillover Effects and the Development Exploit of Developing Countries,” Contemporary Economic Research, Vol. 12, 2005, pp. 40-42.
[7] The Yearbook of Jiangsu Province (Online Version). http://www.jssb.gov.cn/jstj/tjsj/tjnj.htm
[8] The Yearbook of Jiangsu Province (Online Version). http://www.jssb.gov.cn/jstj/jsnj/2001/nj19/nj1901.htm
[9] The Yearbook of Jiangsu Province (Online Version). http://www.jssb.gov.cn/jstj/jsnj/2002/nj14.htm
[10] The Yearbook of Jiangsu Province (Online Version). http://www.jssb.gov.cn/jstj/jsnj/2001/nj19.htm
[11] X. T. Zhang, “EViews Guidebook and Cases,” China Machine Press, Beijing, 2007.
[12] D. L. Mo, “Doing Unit Root Test by SPSS Software,” Journal of Hezhou University, No. 25, 2009, pp. 133-140.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.