The Impact of FDI on the Economic Growth of the Yangtze River Economic Belt: An Empirical Study Based on VAR Model

Abstract

FDI is very important to the economic development of a region. The Yangtze River economic belt is one of the important economic core regions in China. In order to study the impact of global foreign direct investment on the economic growth of the Yangtze River economic belt, this paper uses VAR model to analyze the dynamic relationship between FDI and GDP in the Yangtze River economic belt. The results show that FDI has a positive impact on the growth of the Yangtze River Economic Belt in the short term, but not in the long term. At the same time, the economic development of the Yangtze River economic belt has a positive impact on FDI.