Study Of The Relationship Between Chinese Direct Investment And Trade To Russia

International Trade and international direct investment are the economical activitiesbetween countries, international trade mainly performs for the international commodityexchange, international direct investment performs for the flow of production capital of theinternational. From the perspective of the history of economic globalization, the emergence ofinternational trade is earlier than international capital formation, and international trade hasperformed for the guide of international investment. In today’s world economic integrationprocess, cross fusion trend increasingly apparent. Since the reform and opening up, theeconomic growth of China is developing rapidly, foreign trade and foreign direct investmentscales are continually expanding, so the positive development of foreign direct investment onthe sustainable development of China’s economy has a more important strategic significance.This paper aims at combining the country on the basis of research on the relationship betweeninvestment and trade, in order to make the conclusion more practical significance.Russia as China’s largest neighbors, also belongs to a developing country, is the worldfamous energy power, science and technology power, nuclear power. Russia used to be ahighly developed industrialized countries, after experienced a serious social and politicalcrises in the1990s, it is now accepted as one of the fastest economic development countries atpresent by international economic academia. Therefore, to strengthen economic and tradecooperation between China and Russia have a considerable impact to improve thegood-neighborly and friendly relations, and has the important political significance. Thispaper firstly reviews the development course of Chinese direct investment in Russia, analyzesits investment scale, industry and the main distribution characteristics. Secondly, details onthe Sino-Russian bilateral trade development, import and export goods structure and problemsbetween Sino-Russian trade. Then through the establishment of VAR model empiricalanalyses the dynamic relationship between Chinese direct investment in Russia andSino-Russian trade, found on direct investment in Russia and Sino-Russian trade (includingimport, export) exists the long-term equilibrium relationship. Through the Granger causalitytest, found there is an one-way causal relationship between Chinese direct investment inRussia and China to Russia between outlet and inlet. The impulse response function andvariance decomposition found, China to Russia’s direct investment on trade effects exist obvious hysteresis, China to Russia’s direct investment in China on Russian imports started tohave positive effect then gradually transformed into negative impact; and Chinese directinvestment in Russia on Chinese export to Russia began to smaller impact, then the positiveeffect is reinforced and stabilized. Finally, on the basis of comprehensive analysis put forwardthe related proposal, including preventing investment cooperation risk, establishing andlaunching the emergency plan, actively promote the implementation of the outline of regionalcooperation, accelerating steps to Russian special economic zones, strengthening the platformconstruction, and actively exploring new modes of cooperation, strengthening the guidance toimprove investment level, in order to make better use of Chinese direct investment to promotethe development of China’s foreign trade.