A Study On The Effect Of Foreign Direct Investment To Zhejiang's Import And Export Trade

With the speeding up of economy globalization since 1970s, international funds flow more frequently than before. Foreign direct investment (FDI) becomes the main form of fund flow and the main methods of developing countries gaining foreign funds. FDI is acting a more and more important role in global economy. And it will obviously has effects on the development of host country's economy, especially to developing host country. FDI has been acting a more and more important role in China's economy development and international trade since 1980s. What's more, according to the latest report of trade and development conference of WTO, China has gained bigger foreign funds than America for the first time in 2003 and become the country who attracted the largest sum of foreign funds. However, with the quick development of China's foreign trade, our country has been suffering more and more anti-dumping policies that come from countries including America, UN and Japan. Then how large contribution does foreign funds make to our country's export? This paper will take Zhejiang, a large export and import province in China, as an example to analyze the FDI's important effect on Zhejiang's quick economy growth and international trade. At the same time, we will point out some of the problems in the course of the province gaining and using FDI, such as the relationship between absorbing foreign direct investment and local technology innovation, harmonious industrial development, harmonious religion development etc. And we will give some suggestions on these problems.