The Analysis Of Southwestern Regions' Foreign Investments' Influence On Southwestern Foreign Trade

The going on of development of western regions and the quickening of the construction process of China- ASEAN Free Trade Area are very good opportunities for the southwestern regions to develop foreign trade and increase in absorbing foreign capital. But the southwestern regions are the areas where absorb little foreign capital and foreign trade is comparatively backward. Foreign capitals and foreign trade make little contribution to the economy of southwestern regions. Just because the development of the foreign capitals and foreign trade is slow and unstable, it needs foreign trade and foreign capitals to have a faster and coordinative development, which can drive the development of the whole economy in the southwest to narrow the disparity of the western and eastern. How to make good use of the opportunities of development of western regions and the construction of China--ASEAN Free Trade Area to quicken the development of foreign trade and enable foreign capitals and foreign trade to develop in harmony through absorbing FDI, thus drive the development of the whole southwest, is not only significant to the China's strategy to develop its western regions, but also have far-reaching meanings to the stamina which solves development of the whole China's economy. This paper studies the foreign investments' impact on foreign trade in the southwest, seeks the relation between foreign capitals and foreign trade, and hopes to coordinate the relation, promotes the common development of southwest foreign capitals and foreign trade.This paper firstly summarizes the theories of FDI's influences on foreigntrade and the past studies, and then empirically analyses the relation between the FDI and foreign trade of the southwest, draws a result that is different from the present major view -the FDI's facilitation to the foreign trade is very small and relativity is not strong. This paper doesn't only stay in mathematics analysis, based on the empirical analysis, it uses some relatively economic basic theories to analyze the facts which caused this result, draw out that the main reasons that the southwest FDI's facilitation to foreign trade is small and the relativity of FDI and foreign trade is not strong, are the low level of industrial coordination, poor transporting with high costs, market's slow development, domestic-invested enterprises' limited competitiveness and small competition pressure on foreign capitals. At the end of the paper, it provides the suggestions of promoting coordinated development of southwest FDI and foreign trade.