Research On The Relationship Between China's Outward Foreign Direct Investment And Import And Export Structure Based On VAR Modal

Foreign direct investment and international trade are two important forms in the world economic exchange between countries. With the development of economic globalization and integration, both of them are playing an increasingly important role in the economic development, and research on the relationship between the two has become one of the important research topics in economic circle. In recent years, China's foreign direct investment and foreign trade have been maintaining a good momentum of development. However, compared with foreign trade, the scale of China's foreign direct is still far small. Research on the relationship of China's foreign direct investment and import and export commodity structure is helpful to guide enterprises to choose the suitable strategies of foreign investment, and to Form the positive interaction between foreign investment and foreign trade.As the research object, the paper is based on the relationship between China's foreign direct investment and the structure of import and export commodities. The theoretical analysis and empirical test method are combined to study. Based on the basis of previous literature combed, firstly, it is respectively from the primary products and manufactured goods perspectives to expound foreign direct investment mechanism of action on foreign trade, and to determine the relationship between the two. Then the research model - vector auto regression (VAR) model is established. Then 1990-2010 Chinese foreign direct investment and primary products, industrial manufactured goods import and export data is selected, which is used in VAR model established for the respectively empirical test of the relationship between foreign investment and the primary products import and export, import and export of manufactured goods. And further the import and export data which is a large proportion of total trade in goods is select to inspect of the specific relationship between the foreign investment and import and export commodities. According to empirical results, conclusion: foreign direct investment promotes imports of primary products and exports of manufactured goods, for primary products export and import manufactured goods with the inhibition. Overall, from the commodity structure, the role of promotion is predominant. And based on research findings, relevant inspiration is revealed.