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This work is to analyse relations which exist among the consumption in industrial electricity, GDP, industrial goods export and the FDI in industrial sector in Shandong. From the coefficients of VAR model, we can see once there is one per cent growth in GDP in the previous year or two will increase industrial electricity by 0.03%, and a 1 per cent growth in industrial goods export in the previous year or two will increase industrial electricity consumption by 0.2%, and a 1 per cent growth in FDI in industrial sector will increase industrial electricity consumption by 0.2%. As the Granger Causality test shows that increased industrial electricity consumption can be explained as the causes of GDP growth in Shandong. And increased FDI in industrial section can be explained as the causes by industrial electricity consumption growth. While industrial goods export and industrial electricity consumption could not be explained as the causes to the growth of each other under the study significance.

Empirical Analysis on Shandong Industrial Electricity Consumption, GDP, Industrial Goods Export and FDI in Industrial Sector