Foreign Direct Investment, Import And Export Trade And Economic Growth-Based On Vector Autoregression Model

Abstract

Fostering the new development pattern will promote the level of China's opening-up. Which means that the scale of China's foreign trade, foreign capital use will continue to expand. By establishing a vector autoregression model, this paper conducts an empirical study on the relationship between foreign direct investment, import and export trade and economic growth in China from 1987 to 2018. The results show that there is a long-term equilibrium relationship among foreign direct investment, import and export trade and economic growth in China. China's economic growth has a strong self-promoting effect. China's import and export trade are the Granger cause of economic growth, and in the long term, the contribution of export to the economy is obviously greater than that of import. China's import is a strong Granger reason for export. The contribution of foreign direct investment to import, export and economic growth is relatively low.