Fdi In Shandong's Exports Affect Empirical Research

Since China's reform and opening to the world, especially getting into 1990s, great achievements have been made in absorbing and utilizing foreign capital. Since 1993, China has become the second largest country absorbing the foreign capital in the world only second to America while becoming the first among the developing countries. In 2003, China surpassed America becoming the largest country absorbing the foreign capital. Of the foreign investments, the foreign direct investment accounts for the majority which playing an increasing important role and influencing more to China's domestic economics .The theoretical field has made detailed study on the motivation that foreign direct investment made to our domestic economic. In recent two years, some scholars had studied the relative connection of import, export and FDI. Despite of the different points, the basic conclusion is that FDI can promote China's foreign-oriented business increase.Since 1990's, region economic cooperation has made great achievement in China and has built three economic circles-the Zhujiang Delta, the Changjiang Delta and the Pan-Bohai sea economic circle. As the important part of Pan-Bohai sea economic circle, Shandong's economic development in the recent 10 years is surprising. Shandong Province accounts for 1.94% of Chinese total area and 7.06% of Chinese total population, but its GDP in 2005 holds 10.11% of Chinese total GDP and its FDI accounts for 14.87%. Compared with Guangdong Province and Jiangsu Province, Shandong's base of attracting and utilizing FDI is inferior and Shandong Province ranked 3 in attracting FDI in China and its base of attracting and utilizing FDI is inferior. However, the increasing speed that Shandong attracts FDI is farther than any other province in China..This article takes the province of Shandong as the target that is both the hot area of absorbing foreign investment and the major foreign-oriented business province. It studies the concrete influence FDI made to Shandong's export oriented business in the combined way of the fixed quantity and quality .To state and explain the question, This article adopts connected reliable dates as well as a large number of diagrams and equations to analyze quantitatively to the certain data .On this base, this article explains the inner mechanism of promoting Shandong's in-export development by combining relatively theories of FDI and international trading relation.