The Research On The Trade Effects Of FDI In GuangDong Province

This paper studies systemically how FDI has affected foreign trade effect in Guangdong province based on such obvious economic phenomena as FDI inflows into Guangdong associates with foreign trade increasing rapidly since China reform and open to the world. The paper includes two parts, one is reviewing economic theory between FDI and foreign trade effect, and has some brief summarization and conclusion on previous study. Another part studies gross trade effects and trade quality effects of FDI inflowing into Guangdong province based on analysis in the first part.As for gross trade effect of FDI, the paper has involved two points. One is the relation between FDI inflows and Guangdong's exports, another is the relation between FDI inflows and Guangdong's imports.Empirical study on trade quality effects caused by FDI is the key part in the paper. In this part, the paper mainly studies impacts on trade structure, industrial competitiveness and terms of trade caused by FDI inflowing. For the trade structure effect of FDI, the paper analyzes in the perspective of export goods structure improvement, trade nation changing and trade mode transforming. With regard to industrial competitiveness of FDI, the paper has deep studies on FDI's impacts on industrial competitiveness in Guangdong province according to FDI theory and international competitiveness of industry. As for terms of trade of FDI, the paper studies in a comparative approach impacts on terms of trade in Guangdong.The conclusion demonstrates that (i) FDI inflows have strong relativity with gross increasing of Guangdong's foreign trade, and trade creating effect...