The Analysis Of The Effect Of FDI To The Foreign Trade Of Our Country

As a developing country with the largest attraction to the foreign investment, China has got great achievement since 1990's, in the respect of using foreign investments, especially after entering into WTO in 2001. Furthermore, FDI has affected the economy of China greatly. So every scholar pays great attention on FDI. However, with the gradual development of the economic globalization, as well as the mergence of FDI and international trade theory, the scholars of other country become to combine the FDI theory with the international trade theory instead of studying FDI theory alone. Therefore, the scholars of our country also begin to study the relationship between FDI and international trade. Basing on the above mentioned condition, the dissertation chooses the effect of FDI to the foreign trade of our country as the theme.The dissertation makes empirical analysis on the effect of FDI to the foreign trade of our country by econometric model. The result shows that FDI is good for the development of foreign trade in our country. The dissertation also points out some bad effects of FDI to the foreign trade of our country. Besides, the dissertation considers the model of trade and country as two factors which may affect the relationship of FDI and foreign trade. The result shows that FDI makes different effects on different model of trade and FDI from difficult country makes difficult effects on foreign trade. Basing on the above analysis, the dissertation gives some suggestions on how to make good use of FDI to promote the development of foreign trade of our country in the future.