An Empirical Study on the Relationship between Foreign Direct Investment and Economic Growth in Eastern China—Based on the PVAR Model

Abstract

Over the years, the research on foreign direct investment, economic growth, and financial development has attracted a lot of attention in business studies at home and abroad. Foreign direct investment is widely considered to have an important impact on economic development. The introduction of foreign direct investment not only directly or indirectly affects the regional economic development, but also has a comprehensive impact on the regional export trade, employment, international payments and other aspects of the national economy. Taking the eastern region of China as the research object, this paper studies the relationship between foreign direct investment and regional economic growth by establishing PVAR model, in order to contribute to regional economic development.