Foreign Direct Investment In Shandong Province, The Export Trade Impact Study

As FDI (foreign direct investment) and export play an increasing important role in the economic development of one country or region, the research of the relationship between them is paid widely attention by the academic. Shandong province which is an eastern coastal city used to be one of the earliest cities which introduced the foreign capital. FDI that Shandong province attracted shows a year-to-year growth trend which grows faster and faster. In the meantime, the development of Shandong export trade and FDI keep good synchronicity. With the open of the accelerating pace of Shandong province, the subject that how FDI influences on export trade, what influence FDI brings to the local enterprises export, and what should the government and related departments take measures to deal with issues is particularly important. Therefore, this article combines FDI with export trade to analyze the concrete effect of export trade which FDI brings. In one word, this research has quite theoretical and realistic significance.First, this paper firstly illustrates background and significance, research status, the main content and the main research method. By analyzing the related theory on FDI and export trade, this article introduces the relevance of the theoretical content and empirical analysis.Secondly, this paper draws support from the economic statistical yearbook of Shandong. And article gives a description of current situation that FDI and export trade by charts and text .The aspects of description is mainly scale, industrial distribution, and source and structure analysis and so on.Again, on the previous studies, this paper uses dynamic econometric methods to research the relationship of FDI and export trade. The empirical results show that both in long-term existence stability and mutual granger causality. FDI promotes the development of Shandong export trade to some extent. Then article analyzes the relativity that FDI affects primary product exports, industrial manufactured goods, and labor-intensive and technology-intensive and technology-intensive products export by regression model .The empirical research shows that FDI plays a positive role on export structure upgraded and the internal structure improved.Finally, this paper further studies the influence on domestic enterprises by FDI. The channels that FDI comes into play are the capital accumulation, export engine and so on. This paper attempts to bring forth new ideas in method as the fact that research on this subject is quite limited. Through the empirical researches, competition demonstration effect and export engine effect on the local enterprises offsets in the short term, while the positive effect of export engine is more than the negative effect of competition in the long term. Capital affecting local enterprise has positive influence in the long term. Investment promotion of preferential policies will exert positive effect in the short term, but against domestic enterprises to export development in the long run. Based on this, in the end puts forward several suggestions and measures about Shandong province how to improve the utilization of foreign capital in the future.