An Empirical Analysis Of China’s Petroleum Industry’s Foreign Direct Investment On Petroleum Import And Export Trade

Petroleum is an indispensable strategic resource for a country to develop its own economy.With the rapid development of the global economy,China’s demand for oil is increasingly and directly related to the development of the national economy.Every year,a large amount of oil is imported from abroad.To ensure the consumption gap in the domestic market,China is increasingly rely on foreign countries where we import from.Annually,imported oil accounts for about 70%of the total domestic consumption.If oil is only obtained from international trade,our country will face heavy restrictions in international relations.Therefore,foreign direct investment in the oil extraction industry should be reinforced,which is the inevitable requirements and inevitable trends of the future energy industry and even the development of the national economy.Under the background of international economic and political disagreements,how to implement the foreign direct investment strategy in the oil industry and how to maximize the use of global oil resources to meet the needs of China’s domestic oil market and the stable economic development,those are the points we should talk about.With the rapid development of China’s social economy,the demand for petroleum in the domestic market has rapidly increased,and the dependence of economic development on oil will continue to increase.The contradiction between China’s increasingly sharp supply of oil and its current demand is an important and powerful driving force for China’s oil companies to implement foreign investment strategies.The socialist construction with Chinese characteristics has entered a new era.China’s discourse power in the international community has gradually increased,and the country’s security strategy requires further improvement,which requires Chinese oil companies to take more active participation in foreign direct investment.Since the reform and opening up,China’s oil companies have continued to develop and progress,and their core competitiveness has been continuously improved.The companies have already started to invest in foreign direct investment.However,they are still at an early stage,which is not completely adapted to the requirements for economic development in the new era in China.In today’s world,the global economy is developing rapidly and the process of economic globalization is in full swing.These objective circumstances provide a favorable environment for the development of foreign direct investment.As the world’s second largest economy,the oil industry,should be participated in the global market which is the need for global economic development as well as the general trend.The Chinese oil companies’ international trade and foreign direct investment have extremely important value for the development of the enterprise itself,China’s economic development as well as the global economic development.First this article reviews the relevant researches and theoretical basis of foreign direct investment in oil industry at home and abroad and the import and export trade of oil.Then taking the opportunity of the status quo and development of China’s oil industry’s foreign direct investment and oil import and export trade,the quantitative analysis of China’s oil industry externally.The impact of direct investment on the import and export trade of the petroleum industry.Using the linear regression model,according to the data of relevant indicators from 2003 to 2016,the extent of the impact of foreign direct investment by China’s oil industry on the import and export trade of petroleum was obtained.The results show that the complementary effect of China’s oil industry’s foreign direct investment on oil import and export trade is greater than the substitution effect,and then based on the time series data of China’s crude oil import and export trade over the years,the ARIMA model is used for prediction analysis,and the results are combined with the actual situation according to the above analysis results.Relevant countermeasures and conclusions:The direct foreign investment of China’s petroleum industry is positively related to the import and export trade of petroleum,and the supplemental relationship between foreign direct investment of petroleum industry and the import and export trade of petroleum is greater than the alternative relationship.