A demonstrational analysis of the relationship between the adjustment ofindustry structure and FDI in China

Chen Xun, Gao Yuan-dong

Science Research Management ›› 2006, Vol. 27 ›› Issue (5) : 137-142.

PDF(1122 KB)
PDF(1122 KB)
Science Research Management ›› 2006, Vol. 27 ›› Issue (5) : 137-142.

A demonstrational analysis of the relationship between the adjustment ofindustry structure and FDI in China

  • Chen Xun, Gao Yuan-dong
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Abstract

Based on the cointegration theory ,this paper tests the Granger causality relationship between the adjustment of industry structure and FDI for China over the period 1982-2003. The result shows :there is a long run bidirectional Granger causality relationship in the presence of cointegrarion among the variables, and short run unidirectional Granger causality running from the adjustment of industry structure to the change of FDI . The adjustment of Chinese industry structure has a positive impact on the increase rate of FDI,but the change of FDI is not the main reason that promotes the adjustment of Chinese industry structure in the short run.

Key words

unit root test / cointegration tests / error correction model / Granger causality tests / FDI

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Chen Xun, Gao Yuan-dong. A demonstrational analysis of the relationship between the adjustment ofindustry structure and FDI in China[J]. Science Research Management. 2006, 27(5): 137-142
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