Empirical Research Of Domestic And Foreign Capital On Foreign Trade Growth Performance In Ningbo

This paper uses total investment in fixed assets, foreign direct investment (FDI), import and export trade, imports and exports and other relevant data in Ningbo Statistical Yearbook to study the relationship between foreign investment and the amount of exports and imports, quantitative analyzing contribution of domestic and foreign investment to the growth of foreign trade.In the aspect of total import and export volume, the author takes the domestic capital (total investment in fixed assets), and foreign capital (FDI) as independent variables, while total import and export volume as the dependent variable, establishes OLS model, error correction model and ARMA models after the stationary test of the timing sequence and the Granger causality test of variables, and at last, gets the regression coefficients of domestic capital, foreign capital and total import and export volume. The results shows that in the model of total imports and exports, with other conditions unchanged, the foreign investment changes by 1 percentage point, then leading to a corresponding change in the total import and export of 0.70 percentage points; while changes of domestic investment for every 1 percentage point change arouse corresponding changes in total import and export volume of 0.49 percentage points.On the export side, the author takes domestic capital and foreign investment as independent variables, while export volume as the dependent variable, establishes OLS model, error correction model and ARMA models after the stationary test of the timing sequence and the Granger causality test of variables, and at last, obtains regression coefficients of domestic capital, foreign investment and total export volume. The results shows that in the total export model, with other conditions unchanged, the change in foreign investment for every 1 percentage point arouses a corresponding change in the total export of 0.22 percentage points; while changes of domestic investment for every 1 percentage point change arouse corresponding changes in export volume of 1.55 percentage points.On the import side, the author takes domestic capital and foreign investment as independent variables, while import volume as the dependent variable, establishes OLS model, error correction model and ARMA models after the stationary test of the timing sequence and the Granger causality test of variables, and at last, obtains regression coefficients of domestic capital, foreign investment and total import volume. The results shows that in the total import model, with other conditions unchanged, the change in foreign investment for every 1 percentage point arouses a corresponding change in the total import of 0.21 percentage points; while changes of domestic investment for every 1 percentage point change arouse corresponding changes in import volume of 0.13 percentage points.Overall, the impact of domestic investment on exports is greater than on imports, with the same situation of foreign investment.