FDI sway on economic growth: a case study of China

Authors

  • Farrukh Shahzad Lahore Leads University, Lahore.
  • Ahsan Zia Lahore Leads Univeristy, Lahore
  • Bushra Zulfiqar Punjab Univeristy Lahore
  • Zeeshan Fareed COMSATS Institute of Information Technology

DOI:

https://doi.org/10.14419/ijaes.v2i2.3704

Published:

2014-11-03

Abstract

This research paper intends to examine the effect of outside Foreign Direct Investment (FDI) in China for the period 1987 to 2013. It assessed the GDP development execution and evaluated the historical tend of the FDI and CPI in China. The connection between gross domestic product (GDP,) foreign direct investment and Inflation is measured with the assistance of various relapse models. We used T-statistics and multiple regressions on data. GDP in this model is utilized as dependent variable though FDI and swelling (CPI) are measured as independent variables. As indicated by the results, the model is general reveal that there is positive and significant relationship of GDP with FDI and also positive and significant relationship found between GDP and CPI. On the premise of the experimental results gained, policy maker should play a vital role to invest FDI may be included in the exchange of assets from less beneficial to more gainful divisions of the economy.

Keywords: Foreign Direct Investment, Consumer Price Index, Gross Domestic Product, China.

References

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