Analysis on the Spillover Effect of Foreign Direct Investment: Case of Suzhou

Author

Yu, Tao ; Wu, Qiang ; Hong, Ying

Author_Institution

Dept. of Urban & Regional Planning, Nanjing Univ., Nanjing, China

fYear

2009

fDate

25-27 Aug. 2009

Firstpage

1203

Lastpage

1206

Abstract

Based on time series data of Suzhou from 1991 to 2008, this paper carries out empirical research on the spillover effect of foreign direct investment by using ADF test, Granger causality test and regression method. The result shows that foreign direct investment has spillover effect to GDP which is the Granger cause of GDP in Suzhou. Meanwhile, the inverse relationship does not hold. We also find in the short run, foreign direct investment can increase GDP significantly and positively, but in the long run, it has negative effect on GDP of Suzhou.

Keywords

economic indicators; international trade; investment; regression analysis; time series; ADF test; GDP; Granger causality test; Suzhou; foreign direct investment; regression method; spillover effect; time series data; Agriculture; Cause effect analysis; Economic indicators; Fault detection; Globalization; Inspection; Investments; Manufacturing; Testing; Time series analysis; Foreign Direct Investment; Granger Causality Test; Spillover Effect; Suzhou;

fLanguage

English

Publisher

ieee

Conference_Titel

INC, IMS and IDC, 2009. NCM '09. Fifth International Joint Conference on

Conference_Location

Seoul

Print_ISBN

978-1-4244-5209-5

Electronic_ISBN

978-0-7695-3769-6

Type

conf

DOI

10.1109/NCM.2009.332

Filename

5331568