Abstract
FDI is very important to the economic development of a region. The Yangtze River economic belt is one of the important economic core regions in China. In order to study the impact of global foreign direct investment on the economic growth of the Yangtze River economic belt, this paper uses VAR model to analyze the dynamic relationship between FDI and GDP in the Yangtze River economic belt. The results show that FDI has a positive impact on the growth of the Yangtze River Economic Belt in the short term, but not in the long term. At the same time, the economic development of the Yangtze River economic belt has a positive impact on FDI.
Highlights
As an important link of China's "T" shaped macro strategy, the Yangtze River Economic Belt connects the two most developed core regions (Chengdu-Chongqing region and Wuhan region) with the coastal economic belt
Studies by scholars have shown that foreign direct investment (FDI) has a significant positive relationship with economic growth [2,3,4,5].some scholars have proved that the stable relationship between FDI and economic growth is not always significant [6-[9]. that, FDI has a great difference in the positive driving effect on the economy of different regions [10] and is only effective in some countries [11].Many scholars have analysed the reasons and found that: human capital accumulation [12,13], level of financial development [14,15], Environmental Regulation [16,17], enterprise size [18,19] will affect the effect of FDI on economic growth
Liu Han et [22] studied the relationship between FDI and economic growth through urban data, they mainly focused on the causal influence of FDI on economic growth through three threshold variables, and did not explain the interactive influence between the three threshold variables, nor did they explain the interactive influence of two main factors
Summary
As an important link of China's "T" shaped macro strategy, the Yangtze River Economic Belt connects the two most developed core regions (Chengdu-Chongqing region and Wuhan region) with the coastal economic belt. "Investigation report" for 2020 world investment prospects and development (UNCTAD) showed that : While global foreign direct investment (FDI) has fallen significantly as a result of the Covid-19 outbreak, the demand shock has reduced global FDI volume by 42% from $1.5 trillion in 2019 to about $859 billion, But in China, the use of foreign capital rose 6.2 % to nearly $150 billion. It shows that China is bucking the trend in the COVID-19 epidemic, which is still one of the most attractive economy of FDI.
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