An Research On The Relationship Between Fdi And Export Trade Of Jiangsu Province

Since the Chinese economic and political reform, great achivements have been made in absorbing and utilizing Foreign Direct Investments and foreign trade. Rapidly growing of Foreign Direct Investments and foreign trade stimulate the developing of our domestic economic. This paper takes the Jiangsu Province as the object that is both the greatful area of absorbing foreign investments and the major foreign-oriented business provice. It researches the relationship between Foreign Direct Investments and export in the combined way of the fixed quantity andquality. Then it becomes very important to study them and supports for the government of Jiangsu Province in making policies of absorbing Foreign Direct Investments and developing export.Firstly, this paper reviews the correlative references of home and abroad on the relation between Foreign Direct Investments and Internation trade, including theory and demonstration aspects; then describes and analyzes the relationship between Foreign Direct Investments and export with the data of Jiangsu Province, theoretical analysis shows that there is a clear correlation between FDI and export trade in Jiangsu Province, FDI inputs the captial, technology and mangerment in order to improve the structure of export commodities, optimize the structure of export and increase the export more competitive.On the base of theory analysis, choosing the data from1995to2007of JiangSu, makes use of measure methods, such as ADF test, co-integration test and Granger consquence test to analyse the relationship between Foreign Direct Investments and export of Jiangsu Province,expect the variable of FDI and EX, in this paper, adding the REER, this change makes the demonstration test near to the actual. The result indicates that in the long run Foreign Direct Investments has the steady positive correlation with export. Furthmore, the influence of FDI affecting export is more important than actual valid exchange rate. Also the influence is so different in the variable of primary products export, industrial and mechancial products export and electreical products export, in a short term, the speed of adjusting from imbalance to equation is not same,among these variable, the speed of electreical products export adjusting consequently is is fast. And expore is the Granger reason for Foreign Direct Investments, but Foreign Direct Investments is not the Granger reason for export, which indicates that as present the Foreign Direct Investments of Jiangsu Provice is export-orientedt.At last, this paper integrates the result of measure methods and the theory analysis and points out the existing problems in the process of Foreign Direct Investments and export of Jiangsu. Then we establish correlative policies and suggestion on how to promote the effect of Foreign Direct Investments and export in Jiangsu Procvince.