The Study On Foreign Direct Investment And The Export Of Agricultural Products In Guangdong

Since the reforming and opening policy, the economy of Guangdong province has developed quickly. But in recent years, agricultural trade deficit has been existing for some years and the deficit become larger. The FDI level and the situation of international trade influence the development of economy in one district. So, the paper has analyzed how to deal with the trade dilemma from the FDI view.The purpose of this paper is to investigate the problem of using FDI in Guangdong agricultural area. This paper makes positive analysis based on 1987-2009 data, through the Co-integrating test and Granger Causality test, showing that the FDI is the Granger Causality of the agricultural export and the export, import and FDI integrated in the long run. This paper also brings up some advices in introducing and using FDI to promote the export of agricultural products in Guangdong.The export of agricultural products has deep meaning on the social stability, the economic development and national power. The FDI corporations are the leader of exporting agricultural products. So investigating the relation between exporting agricultural products and agricultural FDI has deep meaning on promoting the economic development of Guangdong. In short, so as to resolve the agricultural dilemma, the government of Guangdong had better create a favorable and equitable circumstance for FDI flows in through favorable policies in one hand; in the other hand, the government had better pay attention to the agricultural industrial chain where the FDI flows in.