An Empirical Analysis on the Relationship between FDI and Economic Growth in Beijing

According to FDI and GDP data sample of Beijing from 1987 to 2007, the Granger causality test result shows: the economic growth of Beijing region was the reasons of the FDI increase, but the FDI was not the significantly power of promote the economic growth. The reasons are: firstly, the proportion of FDI in the fixed assets investment is getting lower year after year. Secondly, the industrial structure of FDI and GDP is asymmetric. Thirdly, the FDI does not significantly promote the technological progress. Finally, the FDI is affected by the double-growth of the savings and the foreign exchange. The policy recommendations are: reasonably controlling the scale of the FDI; improving the quality and level of use; strengthening the orientation of structure to prevent the monopoly and dependence; implementing the national treatment to fairly compete with the domestic funding and mainly relying on the domestic funding.