Empirical Analysis and Granger Causality Test on Foreign Direct Investment and Economic Growth in the Eastern Region

Based on the time serial method, this paper makes quantitative analysis and Granger Causality Test on the relationship between foreign direct investment (FDI) and economic growth in the eastern region. The result shows that the contribution elasticity of the current FDI to GDP in the eastern region becomes greater and greater as time goes on. There exists reciprocal causation between FDI and economic growth in the eastern region. The eastern region should try to take the lead in realizing the transition from the quantity to quality in utilizing FDI.