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Empirical Research On The Relationship Between FDI And Export Trade Of Shandong Province

Posted on:2008-02-25Degree:MasterType:Thesis
Country:ChinaCandidate:F X DiFull Text:PDF
GTID:2189360212493464Subject:International Trade
Abstract/Summary:PDF Full Text Request
Since the Chinese economic and political reform, a considerable number of foreign direct investment (FDI) swarming into Chinese markets and rapidly growing export are regarded as two important engines for economy increasing in Shandong Province. It is necessary to research the relationship between FDI and Shandong's export based on the new condition that China is currently the member of World Trade Organization (WTO) and economic globalisation occurs and expands so fast.This paper first reviews the relative references home and abroad between the host country export and FDI, then describes and analyzes the relationship between FDI and Shandong export. The result is that there is a unilateralism relationship between FDI and Shandong export (Including export from FDI corporations), which is: more FDI, more export, but the increased export does not attract FDI too much. That means Shandong export actually belongs to "FDI leading Export" model. FDI normally goes to machining industry with lower technology and quick benefits, does not go to mechanism industry and electron communication with higher technology much. Therefore industrial products exports increased in the proportion of the province's total exports. However, the proportion of the export of electromechanical products and high-tech products is very small changes.With the describing analysis, this paper, choosing the sequential time data from 1992 to 2005 of Shandong, uses some modern measure methods such as co-integration test, Granger consequence test and error correction model to analyse the relationship between FDI and export in Shandong. The results show that: in a long-term, FDI is the Granger reason for export creasing, but export is not the Granger reason for FDI changing. Furthermore, the influence of RMB exchanging rate affecting export is more than FDI. Also the influence is so different in the fields of Primary products export, industrial products export and mechanical and electrical products export; in a short term, the speed of adjusting from imbalance to equipoise is not same because primary products export is undulate largely and its speed of adjusting consequently is fast. Also, the influence of FDI diversification on Industrial products export is greater than that on primary products export, even the influence of FDI changing on mechanical and electrical products which belongs to industrial products is bigger than that on the whole industrial products export.Finally, this paper brings forward some related countermeasure and suggestion based on the result of analysis and the situation of attracting FDI faced by Shandong.
Keywords/Search Tags:foreign direct investment, export trade, index of real effective exchange rate, co-integration test, Granger test, Vetor error correction model
PDF Full Text Request
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