Empirical analysis and Granger Causality test on foreign direct investment and economic growth in the western 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 western region. The result shows that the contribution rate of FDI in the western region to economic growth has much room for improvement, and there doesn´t exsist Granger Causality relationship between FDI and economic growth. In order to develop the effect of FDI to economic growth, the western region should increase the degree of attracting foreign investment and the level of opening up.