American Direct Investment's Impact On Bilateral Trade Between China And USA

There is high-speed growth in the two fields of both American direct investment and bilateral trade between China and The United States. Are there some relationship and casuality in two of them? Does American direct investment contribute to the improving of the merchandise export and import? In this thesis, we make qualitative and quanlitative analysis about these problems from scales, regions and industries. Firstly, we macro-economiclly describe and analyse scale; secondly, we continue to analyse the relationship in two aspects. On the one hand, we research this linkage on the basis of regions; on the other hand, we research improvement of investment's structure and trade's structure, moreover anlyse relationship between American direct investment and bilateral trade.The thesis has 5 chapters. The chapter 1 introduces theories. Literatures summed uP from the theoretical and emPirical asPects, the research status quo in domestic academic field, analytical orientation. The chapter 2 describes the scales of investment and bilateral trade, analyses the long-run and short-run effects of American direct investment in Cointegration and ECM, and makes an insight into the causality. This paper it is founded that there is complementary relation. The chapter 3 and the chapter 4 respectively lucubrates the relationship between investment and bilateral trade on the base of regions and industries. The chapter 5 is about the conclusions .With examination through theory analysis and real example, no matter in term of in macroscopicking or in terms of area and trade, there is complementary relation. The causality is that merchandise exports bring direct investment, and then the inpour of direct investment obviously promotes merchandise imports. In a sense, above-mentioned research, can offer theory support and real example basis for the adjustment that our country make the Sino-America trade policy.