The Study Of Affection On Our Country's Foreign Trade From Foreign Direct Investment

Many developing countries take FDI as an important content in a native economy development. For many developing countries, foreign trade is important. But great quantities of FDI must produce deep influence on trade. Recently, FDI has been the most important factor on promoting our country trade. A great deal of FDI inflows produced comprehensive influence to our country different profession of foreign trade. Therefore, it has been a hot research topic about how to evaluate the impacts of FDI on China's economy and accordingly carry out certain policies. A lot of problem is flowing out, such as: FDI is how to function, how to influence the country's trade? At the time of increase of trade volume, what changes do industrial structures take place? Speaking from the macro view, extending export and promoting trade growth are one of the main policy targets.The relationship between international direct investment and international trade has been first analyzed. The classic model in trade theory is further applied and it is found that FDI truly promotes the provincial trade development of China's economy with other countries. Base on China's economic data during the period of 1980-2005, the co integration and error correction model analysis reveals that FDI mainly promotes the development of China's commodity export, which means that FDI also helps to enhance China's export structure. Then this text is discussing that FDI impaction our country's different professions export. At the last, this text pointed out some problems in absorbing FDI in promoting our country's different profession trade and put forward a series suggestion to this.In addition, this text analyzes the influence between FDI and trade of our country from new angle and e- examine on FDI influence our country's merchandise trade. This text gives more practical and possible policies than before. They are creative points.