【正文】 DP to DI and per cent in reverse. It is noted that each of the three variables explains the preponderance of its own past values (forecast error variances). This means that the current/past FDI, DI and GDP have strong influences on their own future/current trends. The Granger causality test results for the three variables. The results show that: (i) the effects of DI and GDP on FDI are not statistically significant。 1 中文 3080字 本科畢業(yè)論文外文翻譯 外 文 題 目 ： Foreign Direct Investment, Domestic Investment and Economic Growth in China: A Time Series Analysis 出 處： The World Economy, ,14679701. 作 者： Sumei Tang, E. A. Selvanathan and S. Selvanathan. 外文原稿 Foreign Direct Investment, Domestic Investment and Economic Growth in China: A Time Series Analysis Sumei Tang, E. A. Selvanathan and S. Selvanathan 1. Introduction Despite a large amount of literature on the subject, the role of FDI in economic growth remains highly controversial. The proponents of FDI argue that it helps promote economic growth through technology diffusion and human capital development. This is particularly the case when MNEs in a host economy have vertical interfirm linkages with domestic firms or have subnational or subregional clusters of interrelated activities. Through formal and informal links and social contacts among employees, MNEs diffuse technology and management knowhow to indigenous firms. Consequently, economic rents are created accruing to old technologies and traditional management styles. Also, FDI helps overe capital shortage in host countries and plements domestic investment when FDI flows to highrisk areas or new industries where domestic investment is limited. When FDI occurs in resource industries, domestic investment in related industries may be stimulated. Moreover, FDI may result in an increased demand for exports from the host country, helping attract investment in the export industries. Empirical studies supporting these arguments include Sun (1998) and Shan (2020). Using the conventional regression model and panel data, Sun 2 (1998) finds a high and significantly positive correlation between FDI and domestic investment in China. Shan (2020) uses a VAR model to examine the interrelationships between FDI,industrial output growth and other variables in China. He concludes that FDI has a significantly beneficial impact on the Chinese economy when the ratio of FDI to industrial output rises. In contrast, opponents of FDI argue that FDI crowds out domestic investment, and has an adverse effect on growth . In particular, the industrial organisation theory stipulates that FDI is an aggressive global strategy by MNEs to advance monopoly power over and above indigenous firms of the host economy. The ownershipspecific advantages of MNEs ( technologies, management knowhow skills, transaction cost minimising and other intangible advantages)could be transformed into monopoly power. This monopoly power can be further reinforced by the other two advantages of MNEs: the market internalisation specificadvantage and the locationspecific advantage (Dunning, 1981). In addition, FDI may disrupt backward linkages through substitution of imports for domestic modities (Noorzoy, 1979). The present paper contributes to the existing literature by applying a multivariate VAR system with the error correction model (ECM) and time se