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A Study About Influence Of Foreign Direct Investment On China Export

Posted on:2006-12-04Degree:MasterType:Thesis
Country:ChinaCandidate:J GuFull Text:PDF
GTID:2156360152991489Subject:International trade
Abstract/Summary:PDF Full Text Request
According to related opinions of Koyimom, the relation between International Investment and International Trade is mutually complementary. Foreign direct investment can raise host country's efficiency, especially for developing countries, and fully exert its comparative advantage so that they can get more benefits from International division of labor on the basis of comparative advantage principle. Many countries' practices prove that multinational corporations' direct investment can increase host country's exports. Direct investment promotes the formation of labor division system for global manufacturing industry, which changes International Trade pattern to great degree. Now, the viewpoint is widely accepted that multinational corporations can help developing countries realize the upgrading of trade structure and the enhancing of competitive power.Since China's reform and opening to the world, we insist the basic policy of opening, and actively introduce foreign capitals. By now, we have made outstanding achievements. Meanwhile, the trade creation effect of foreign direct investment is obviously shown in China, especially for the export. The surprising growth of exports is tightly related to foreign direct investment. The positive effects of foreign direct investment upon export have been greatly proved by practices. With China's entry into WTO, our investing environments have great improvements: domestic laws and regulations are in keeping with international standards and the process of law establishment accelerates; restrictions of domestic industries decrease and markets are becoming more widely and deeply open to the world; the economic policies are more stable and transparent. All above factors greatly enhance foreign investors' confidence and stimulate them to invest in China. Therefore, the second climax of foreign direct investment after 1992 comes.In terms of the effect of foreign direct investment upon export, former studies are focused on some special periods, so the conclusions are only fit for the special period. But there have been great changes in recent years, which are sure to have impact upon the trade effect of foreign direct investment. Considering this reason, it is necessary to make a new analysis for the trade effect of FDI. This new analysis will give new conclusions which are helpful to more efficiently exert positive effects to increase export and upgrade structure. This is the purpose of the thesis. The systematic study will go from two aspects: export gross and export structure. It is not only anexperience conclusion for the past but also guidance for the future. The framework of this thesis is as follows:The first chapter gives a theoretic analysis to the influence of international direct investment on international trade. Firstly, the paper outlines related theories about the relationship of direct investment and trade. Secondly, it analyzes the Koyimom's theory about the promotion relationship, which is the Koyimom Model. And then on the stand of host country, it analyzes theories about the influence of direct investment upon export. All above theories are the basis of this thesis.The second chapter reviews the development of FDI and export in China, and gives a particular analysis of features for every phase. On the basis of above reviews, it gives development tracks of FDI and export. These tracks fully reflect the positive relationship between FDI and export in China, which means FDI can promote export. The third chapter applies regression model and index to elaborate the influence of FDI upon export in China. Firstly, by regression model, it analyzes the influence of FDI upon export gross. Secondly, it focuses on the influence of FDI upon export structure, in which regression model and index are both used. And then by discussing the influence of FDI upon comparative advantage and factor endowment in China, it also explains how FDI can upgrade export structure. At last, comparing foreign investment enterprises (FIEs) and non- FIEs, it analyzes the contributions of foreign investment...
Keywords/Search Tags:Foreign Direct Investment, Upgrading of Export Structure, Comparative Advantage, Factor Endowment, Capital Accumulation, Technology Advancement
PDF Full Text Request
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