Impact Of Import And Export Of Jiangsu Province. Fdi Empirical Research

In the process of world economy globalization, import and export trade and foreign direct investment are becoming the main forms of participating in the world economy. And they are pushing the development of our country actively since the reform and opening up. Thus, how to coordinate the relationship between the foreign trade and direct investment and how to take better use of foreign investment are closely related to the rapid of china's economy under the situation.As an important representative of export-oriented economy, the total amount of foreign direct investment Jiangsu province ranked first for seven consecutive years. Meanwhile foreign trade volume ranked the top. They played a pivotal role on promoting the economy of Jiangsu. This paper starts from stating the classical theories of relationship between international investment and trade by the method of metrology, and then analyses how the FDI in Jiangsu influences the export and import trade. And next we give a descriptive analysis of the foreign trade situation and the characteristics of FDI and export and import trade, which prepare for the further empirical analysis. In the empirical part of the paper, we use the methods of cointegration analysis, error correction model, and Granger test to study the FDI's influences on the extent and structure of export and import trade. Besides, we compare the differences among three regions (southern, northern and middle of Jiangsu). Results show that, the relationship between FDI and the import and export trade is a long-term stable cointegration complementary relationship. FDI of Jiangsu has a positive influence on the export and import of manufactured and primary products. And it does good to the structure of the export and import trade. In minor extent, there is a trend of alternative. Complementary and alternative should be the relationship of coexistence, mutual relations are the main. In the base of the research of all above, there are some suggestions aiming at the using of Jiangsu's trade and FDI.