An empirical analysis on the relationship between FDI and urbanization of Jiangsu Province

In this paper, the author uses the modern econometric methods by panel unit root test, cointegration test and random effects models, and the data of FDI (2000-2011), urbanization rate, industrial structure and regional GDP of Nanjing, Xuzhou, Suzhou, Wuxi and other 13 cities of Jiangsu Province, researches the relationship between FDI and urbanization rate. Model shows, FDI was closely correlated with urbanization rate, the highly correlated with industrial structure, while it negatively correlated with the growth of GDP, and the degree of correlation is not high. The results shows the industrial structure and the urbanization rate is the main cause FDI growth.