Study On Bilateral Trade Effect Difference Caused By Different Sources Of FDI In China

The trade effect of foreign direct investment (FDI) is the hot topic in the international trade area. The study on the bilateral trade effect difference caused by the different source of FDI in China will be in favor for choosing the right trade policy and FDI policy and judging the quality of different source of FDI in ChinaOn the basis of international economics theory, international trade theory, industrial structure theory and foreign investment theory, this dissertation makes a comparatively full positive analysis on the bilater trade effect difference caused by the different source of FDI in China.This dissertation uses the panel data model to do demonstration research from three aspects: the first is bilater trade quantity effect difference caused by the different source of FDI in China; the second is the bilater trade structure effect difference caused by the different source of FDI in China; the third is the bilater trade condition effect difference caused by the different source of FDI in China.The conclussion is reached:There is no long-term equilibrium relationship between the different source of FDI in China and the bilater trade quantity,and the FDI from Germany has the best bilater trade quantity effect,because there is a good cycle among the Germany FDI,China import from Germany and China export to Germany;The bilater trade structure effect of the different source of FDI in China is to balance or to ease the bilater trade structure effect difference caused by the local factors,which is obviously embodied in taiwan; The bilater trade condition effect caused by the difference souce of FDI in China is not obvious,which can be neglected,comparing with the bilater trade condition effect caused by the local effects. At the end of this dissertation some policies are brought forward: competition-oriented principle, trade benefit distribution optimized-orientied principle and policy composition principle.