摘要:本文是一篇对中国经济分析的加拿大论文,中国以每年8%的速度发展经济,伴随许多影响经济增长的因素,中国的经济增长的主要因素是由外国直接投资(FDI),这对其产生了显著而积极的作用。
andong, Liaoning and Zhejiang, and the municipalities of Shanghai, Beijing and Tianjin. In contrast, in the central and the western regions it was only 11.15%, and 3.09% respectively. It widened the income gap between the eastern and the western regions of China (Chen, Chung, Lawrence Chang and Yimin Zhang 1995)
Multinational companies have started to pay higher salaries for their employees. It put pressure on domestic firms' to pay high for employees to retain their staff which exerts an extra burden on their revenue.
4. METHODOLOGY, DATA & EMPIRICAL RESULTS
4.1. Model Specification
Further theoretical and qualitative insights can be drawn for this research but it is important to stress however that empirical analysis are also crucial in understanding the relationship between FDI and economic growth and also the spillover effect caused by FDI. For this research, the model used focuses on the augmented Solow growth model of the 1980s.
Assuming a Cobb-Douglas technology, output (Y) is essentially determined by two physical inputs, labour (L) and capital (K) as shown in Equation
Yt=A Lt αKβee ……………………. (1)
where A is constant and e is a disturbance term normally distributed with mean zero and a constant standard error σ. Equation 1 implies that the growth of Y will depend on the growth of L and K given the sizes of the input elasticises α and β respectively [9]
A is technology which is the total factor productivity level. Previous literature on economic growth has viewed technological progress in many ways, as a by-product of other economic activities, as a free good and because of research and development (R&D). So it is only fair that spillover effect of FDI in China is measured in terms of R&D.
L is total labour force in other words the economically active population.
Y is the output which is the Real Gross Domestic Product. It is also the dependent variable. The independent variables include;
K is stock of physical capital (fixed capital formation)
Y=A Lt αKβee Zt ………..………….. (2)
Z represents other factors that can influence Y and for this research, they include;
FDI is Foreign Direct Investment which is measured in inflows
H is Human capital in terms of education (secondary school to be precise). The reason for using human capital as a variable is that, economic growth in a country will be influenced by a lot of factors and human capital especially education is one of them, so we use secondary school because education is optional after this period.
Taking logs of equation (2), the relation for growth can be expressed as:
lnYt= α0 + θFDIt + t ………………………(3.1)
lnYt = α0 + α1 + ln A + αln Lt + βln Kt + θFDIt + ψln Ht + t …….……..…… (3.2)
Due to data constraints, we substitute variables with ones that closely define them. In the equation (2) for example, physical capital is required to estimate the growth model, but previous literature have used gross fixed capital as a substitute for this variable. Human capital has also been proxied by school enrolment and for this study, secondary school enrolment is used.
4.2. Data and Variables
For this research, data used are collected from a wide variety, they include; the World
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