The Study On FDI On Trade Structure In Zhejiang Province

Since China's reform and opening to the world, absorption and utilization of foreign capital in China has achieved great achievements, as one of China's coastal provinces, the entry of foreign capital promotes the development of export trade in Zhejiang Province, with the increasing of foreign direct investment every year, Zhejiang's total exports also continued to expand, at the same time, the export commodity structure has gradually been optimized, therefore, whether there is inevitable connection between the increase of foreign direct investment and the optimization of the structure of export in Zhejiang Province or not? If we can solve the problem, it will play an active supporting role in the investment policy in Zhejiang Province.After studying the interrelated literatures, first, using qualitative analysis method, by using time sequential data(1986-2008) of Zhejiang Province, the author analyses present situation and the feather of absorbing foreign capital in aspects of total amount of foreign direct investment, the development process of foreign investment, form, sources, industry structure, regional distribution. Then on the basis of qualitative analysis, by using the quantitative analysis, the author investigated the effects of FDI on the export commodities structure in Zhejiang Province systematically around the center of Export Structure. By constructing the variable of export commodity structure, the author performed the empirical analysis by using co integration, Granger causality and error correction model. The results show that there is a long-term stability relationship between the foreign direct investment and the structure of export commodities in Zhejiang Province, the foreign direct investment can precede the change from primary products to manufactured goods, which shows the two relationships from a quantitative point of view.Finally, based on the empirical analysis, the author proposed that how to optimize the export commodities structure by using the foreign direct investment in Zhejiang Province. Including adjustment of foreign investment, the development of rational industrial policies to promote adjustment of industrial structure, optimize, and upgrade and improve the international competitiveness of products; implementing diversified investment strategy and increasing the intensity of the introduction of foreign investment, improving the ability of independent innovation in enterprises, enhancing their export competitiveness. Adjust the export structure in order to promote economic restructuring and upgrading.