FDI And Its Effects On JiangSu's Export: An Empirical Study

Since China's reform and opening to the world , especially getting into 1990s , Great achievements have been made in absorbing and utilizing foreign capital . Since 1993 , China has become the second largest country absorbing the foreign capital in the world only second to America while becoming the first among the developing countries . In 2003 , China surpassed America becoming the largest country absorbing the foreign capital.from the foreign investments , The Direct Investment accounts for the majority which playing an increasing important role and influencing more to China's domestic economics . The theoretical field has made detailed study on the movitation that foreign direct investment made to our domestic economic. In recent two years , some scholars had studied the relative connection of FDI and import, export commerce . Despite of the different points , the basic conclusion is that FDI can promote China's foreign-oriented business increasement.This article takes the province of JiangSu as the target that is both the hot area of absorbing foreign investments and the major foreign-oriented business province. It studies the concrete influence FDI made to JiangSu's export oriented business in the combined way of the fixed quantity and quality . To state and explain the question, This article adopts connected reliable dates as well as a large number of diagrams and equations to analyze quantitatively to the certain data . On this base , this article explains the inner mechanism of promoting JiangSu's in-export development by combining relatively theories of FDI and international trading relation . At last , it concludes the following :1. FDI plays a decisive role in improving JiangSu's export oriented business and gradually optimizing the structure of export trade, which generally enhances the competitive ability of export.2. According to the research , the export tendency of the foreign capital enterprise is superior to domestic enterprise . Comparing and contrasting the competitive abilities of the two enterprises , the formal take monopoly position which has an active influence to the development of JiangSu's export oriented business ; FDIalso bring the problem that the three zones of JiangSu exit the gap on export.; The upgrade of technology face challenge.At present , China has joined WTO and multinational corporations entered Chinese market one after another especially in JiangSu province with a gradually increasing investments , they changed JiangSu to an important manufacturing base step by step . On this base , it is essential to study systemizedly the influence that FDI has made to the development of imports and exports . Aiming at the analyzed problems and conclusions and combining the new characteristics of the international capital flowing in new era , they attempted to put forward many constructive suggestions and proposals to expect JiangSu's further efficiency in utilizing foreign capital , release its negative influence and promoting its healthy development of export oriented business.