A Study For The Trade Effects Of China’s OFDI

International direct investment plays an important role in today’s economic development. It becomes one of the main factors which influence one country’s economic development, the balance of international payments and industrial structure. In China’s case, the opening and reform policy made China a rapid development. China’s outward foreign direct investment has gradually become the important means of China’s economic development. And then outward foreign direct investment and foreign trade whether there will be offset by gradually into the role people’s perspective. This paper it is in this context and the problem is studied and thinking.This paper aims to China’s outward foreign direct investment to the trade effects of research, through the theory empirical combination of methods, further proof that China’s economic conditions of outward foreign direct investment and foreign trade relations, and through the analysis to give advice. This paper first introduces the present situation of the outward foreign direct investment and the trade in China, and summarized the characteristics through which found that both have a certain internal mutual contact. Analyze the different motivations of the outward foreign direct investment,and put forward some assumptions based on this theory foundation. Use the gravity model and use the variable equation of outward foreign direct investment flow, the last year for the outward foreign direct investment, exports and stock in gross domestic product and the return of the. Unit root test method for further measurement test demonstrate the proposed hypotheses, draw the conclusion:the Chinese foreign direct investment is the main existing trade creation effect, and each country different. In addition, the Chinese market-oriented outward foreign direct investment, resources-oriented outward foreign direct investment and innovation of the assets oriented outward foreign direct investment revealed a general trade creation effect, but one of them foreign direct investment flow and stock in trade effect is not the same. While different motivation of the investment to the influence of the trade size also is not the same. Based on the above conclusions, this paper puts forward some relevant countermeasures that China’s outward foreign direct investment should according to investment motivation, investment country with specific aim. Only in this way can we make China’s going out strategy to play out more advantage.