The Research Of The Impact Of FDI On China’s High-tech Exports

High-tech industries, as a reference standard of the level of national science andtechnology and the export trade, is now driving the entire manufacturing sector into ahighly rapid development stage with its improvement. The vigorous development ofhigh-tech industries also contributes to the further improvement of economy, R&Dinvestment, which positively enhance the technological innovation capability and theeconomic value added of the export products. With the continuous adjustment of China’sinvestment policy, FDI (foreign direct investment) becomes an important factor, which isthe main source of power of China’s high-tech product development and its export trade.Technological innovation and progress lead by FDI technology spillover, as well as theabsorptive capacity of the domestic enterprises of the technology spillovers and the level ofmarket competition, will all affect the high-tech produces export trade.According to the relevant literatures, this dissertation reviews the theories of therelationship between FDI and foreign trade, and also resolves the implementationmechanism of FDI technology spillovers and the absorptive capacity based on two majoraspects: human capital and R&D level. Through the statistical data of the product category,corporate types, mode of trade, market structure, and export source, the characteristics ofexport trade of China’s high-tech industry is analyzed. Furthermore, a vectorauto-regression model, along with co-integration and Granger test methods, has beenemployed to analyze the influence of the level of FDI, capital investment, R&D investment,human resources and other factors on the short-term and long-term effects of high-techproducts export trade. The results show that "crowding out" effect exists between theforeign-invested enterprises and the domestic enterprises, which will weaken the domesticcorporate market competitiveness and seize the export market. Meanwhile, due to thetechnological gap between the domestic enterprises and the foreign-funded enterprises andits limited absorptive capacity of high-tech, the technology spillover effect reflects not obviously. Therefore, China must create a favorable environment for foreign investment,formulate preferential policies, attract investment reasonably and increase the support ofdomestic enterprises. Besides, investment in education funding would be enhanced, andhuman capital cohesion mechanism would also be built. Finally, the improvement of themarket competitiveness of local enterprises and a reasonable trade-off between high-techabsorption capabilities and innovation ability are also necessary.