Empirical Study on FDI, International Trade and Economic Growth in Chongqing Based on VAR

Abstract

Based on the Chongqing economic data from 1987 to 2008, this paper performs an empirical research according to VAR modle and the results of vector error correction model (VECM), it draws a conclusion that there is a long-term equilibrium between the three variables, FDI and export have great impress on economics. The results also reveal that Chongqing is an export-led growth district and export is a causality to import there is a bi-directional causality between FDI and export.