Research On Trade Effect Of Foreign Direct Investment In Chongqing

Since the reform and opening up, China has been committed to opening up to change the economic backwardness, and now China’s economic situation really has undergone enormous changes. Decades, China continued to increase the intensity of the introduction of foreign capital, the size and number of foreign direct investment have all increased. Meanwhile foreign direct investment’s contributes to China’s economy have become increasingly evident. Chongqing City is located inland, compared to the eastern and central regions are in a disadvantageous position in the development process of opening up, however, Chongqing still steadfastly along the path of reform and opening up. Since Chongqing became a municipality, the development of foreign trade has been firstly speed up, and along with China’s accession to the WTO, as well as the development strategy of western development, Chongqing City got another opportunity for the development of economy and trade. On this background, Chongqing vigorously develop foreign trade and the introduction of foreign direct investment, so foreign direct investment has gradually become one of the important source of economic development in Chongqing Municipality and has a profound impact on the economy of Chongqing. As China joins the WTO and accelerates the pace of world economic integration, foreign direct investment has become an important content of China’s economic construction and elements, so does Chongqing. However, objectively speaking, in the process of introduction and utilization of foreign direct investment in Chongqing, there are still some problems. Its trade effect has not been well represented, so the study of foreign direct investment’s impact to Chongqing economic growth and foreign trade are really very important.Firstly, sort out the literature at home and abroad, including the Mondale alternative theory foreign direct investment and foreign trade, the complementary theory on behalf of Kiyoshi Kojima and so on. Then study four different trade effects of foreign direct investment and the direct and indirect impacts of the investment country and the specific channels of influence.Secondly, by inspection of the relevant Statistical Yearbook, Statistical Bulletin, as well as websites, we understand the status of foreign direct investment and import and export trade in Chongqing Municipality, including the total scale, the investment way, the origin country or region, etc. It gives a different level of vertical comparison and analysis the developments and trends of the previous contents since Chongqing became a municipality in order to have a specific knowledge of the use of foreign direct investment.Again, using regression analysis and correlation analysis to verify the Chongqing Foreign direct investment’s impact on the total import and export trade, the real Import and export trade and import and export structure. Then use correlation analysis to find out the factors of the trade effects of foreign direct investment. The conclusion are:First, the Chongqing Foreign direct investment plays an important role in the increasing volume of import and export of Chongqing; second, the Foreign direct investment improves the structure of export trade in Chongqing, but has no significant effect on the structure of imports; Third, the main affecting factors of the trade effects of foreign direct investment in Chongqing are the origin country or region of investment and investment industry.Finally, on the basis of the previous theoretical and empirical analysis, there is a specific analysis about problems in the use of foreign direct investment of Chongqing City, then give some corresponding countermea-sures and suggestions for Chongqing and Prospect the future introduction and utilization of foreign direct investment in Chongqing.