The Comparative Analysis Of The Path Impact Of Foreign Trade, FDI On The Economy Of Guangdong Province

Since the reform and opening up, the economic exchanges and cooperation of all thecountries have become increasingly frequent and in-depth, and cleared the way for thecross-border flow of goods and elements, International Trade and Foreign DirectInvestment rapid growth. Therefore, the path study of the impact of foreign trade andforeign direct investment on economic growth as well as the relationship analysis betweenthese has become an important research topic.As we all know, as the more economically developed coastal provinces, GuangdongProvince, play an important role in attracting foreign investment and foreign trade. After30years of reform and opening up, the GDP of Guangdong Provincial Economic raisedyear after year, the volume of import and export and foreign direct investment are inupward trend. The research of the relationship between the Guangdong Provincial ForeignTrade and foreign direct investment as well as the effect of integration of trade andinvestment on economic growth of Guangdong Province is a strong practical significance.The paper analyzes foreign trade and foreign direct investment on economic growthfrom the horizontal and vertical angle as well as the comparison between these. Fromhorizontal angle, as for the capital accumulation, the expansion of foreign trade promoteeconomic growth, but simply relying on the volume of trade to spur economic growth isdifficult to sustain, and accelerate the trade structure and accelerate the upgrades of tradestructure are urgency difficult task for Guangdong Province; As for technological progress,foreign trade volume significantly promote economic growth in Guangdong Provincethrough technological progress. Foreign direct investment in Guangdong Provincepromotes total factor productivity. From vertical angle, the paper analyzes the change oftrade, FDI on economic growth before and after2002: Foreign trade significantlycontributed to economic growth before and after2002, but the role in promoting economicgrowth after2002is less than before2002. The structure of foreign trade before2002significantly promotes economic growth, but significantly hindered economic growth after2002. Foreign direct investment promotes economic growth before and after2002, but had no significant effect in promoting economic growth after2002. There are two ways in therelationship between foreign trade and foreign direct investment: substitute andcomplement. In this paper, the empirical test on the data of Guangdong Provincial ForeignTrade and foreign direct investment concluded: they are complement.