a. Issue: Try to establish an econometrics model to analyse the impacts and influences of Foreign Direct Investment (FDI) and urban unemployment ratio U on Gross Domestic Products (GDP).
b. Reason for researching:
• Firstly, this is an issue relating to economics. All the knowledge we can gain from this researching will be helpful for other economics subjects such as Macroeconomics, International Economics .and our future jobs as well.
• Secondly, our country started to innovate in 1986; foreign investment law in Viet Nam was promulgated on 29th December, 1987 to make a legal basis for the investment in Viet Nam from foreign investors. The fact is that since Viet Nam opened to integrate, foreign investment has become a very important source of capital for Viet Nam economy in industrialization and modernization. Being a member of World Trade Organization (WTO), Viet Nam has many chances to gain more FDI. However, now the issue is that how to use FDI effectively, make FDI be an important factor to develop the economy.
The study of the effects of foreign direct investment and unemployment on economic growth helps us to know the extent of the impact of FDI to GDP as well as U to GDP. According to learning the theories and features, understanding characteristics of this and trends to develop, we can make the directions and solutions to attract FDI and use FDI in the most effective way; besides, try to bring back unemployment ratio to nature unemployment standard in order to help GDP grow up.
