FDI And Its Effects On Guangdong's Foreign Trade: An Empirical Study

FDI and International Trade have close relationship with each other. In research methodology the theoretic analysis and case-study are both used, first to sum up the theory about relationship between FDI and International Trade, then to examine the relationship between FDI and Guangdong's International Trade with the method of empirical analysis with elaborate data. Firstly, it has the growth effect to the total amount of foreign trade; Secondly, it optimizes the structure of foreign trade commodities of Guangdong; Secondly, it changes Guangdong's main trade way---the processing trade is becoming main trade way; Fourthly, it impacts the Guangdong's foreign trade district structure; Fifthly, the article analyzes the effect of FDI on the competitiveness of Guangdong's export products, the conclusion is that FDI has negative effect on competitiveness of primary products, however, it can improve our competitiveness of finshed products. The article also analyzes the relationship between FDI and export competitiveness of labor-intensive products/capital-intensive products and technology-intensive products in order to have in-depth comprehension on how FDI influences export competitiveness of finished products, it's found that FDI can improve the competitiveness of technology-intensive products and capital-intensive products, but it has negative effect on the competitiveness of labor-intensive products. On the basis of these previous demonstrational analysis, finally the article provides related suggestions and development strategies in order to boost up the positive influence of FDI on foreign trade.