An Empirical Analysis Of China's Outward Foreign Direct Invetment (OFDI)'s Effect On Terms Of Tade Of Primary Products

With rapid development in our economy,the demand for primary products such as minerals oil and natural gas is increasing. As the foundation and support of economic growth,the significancy of primary products in the process of sustainable development begins to become clear.Terms of trade is an important index for measuring the gains from trade, and schloars analyse terms of triade in detail with different methods.The scale of outward foreign direct investment in our country are expanding, and the amount and flow direction of OFDI affect our economy in different way.In the mean time,primary industry such as mineals and oil accounts for a large proportion of OFDI,so it is necessary to find out the influence of OFDI on primary prodicts.The study of terms of trade of primary products from Scolars at home and abroad put more focus on the change of terms of trade of primary products, and the study of the influence of OFDI on terms of trade is less.In view of all this,this paper analyse the impact of OFDI on terms of trade of primary products from theoretic and empirical perspective,hoping to help with the study of this field.This paper divides into five parts:First part:introduce the objective,significancy and research methods of this paper, and summarize and evaluate the present situation from domestic and foreign research.Second part: analyse theoretically the impact of OFDI on terms of trade.Third part:summarize the current situation of OFDI in our country and the trend of terms of trade of primary products.OFDI in our country fluctuate in the 1990s,but in the state of steady and raid growth in recent years.The NBTT of primary products descend while fluctuating.The ITT ascend while fluctuating.Forth part: analyse empirically the influence of OFDI in our country on NBTT and ITT from mensurable angle.Empirical analyse shows that there is a long-term stability relation between OFDI and NBTT of primary products.OFDI and ITT of primary products have no long-terms stability relation.Fifth part:submit advice based on the conclusion from empirical analyse.This part submit advice from the view of improving OFDI supporting policies,reinforce coordination among OFDI,developing ways of OFDI,optimize OFDI structure and make our future market bigger and stronger.