Dynamic Analysis Of The Impact Of Out Forward Direct Investment On The Export Trade Of The Home Country

Foreign direct investment (FDI) and export trade (EX) are two approaches that a countryintegrates into the international market in the context of world economic integration. Whetherthey are promote or alternative relations, arguing factions have different points of views, andthey have not come to a generally accepted theoretical system. Based on the idea of theoreticaldiscussion--empirical test--policy analysis, using the construction of "FDI-EX (homecountry export trade)" time series model, this article analysis the relationship between FDI andEX once again，under the premise of seeking the combination of theory and reality from adynamic point of view. Firstly, using South Korea as the example of empirical research, thisarticle concludes that foreign direct investment (FDI) has differential effects on his or her homecountry export trade in the country’s three different stages economy.To explore the relationship between China’s foreign direct investment (FDI) and exporttrade (EX) has important theoretical and practical significance to the promotion of China’sforeign economic direction development. Therefore, on the basis of deriving the FDI-exporttrade EX (home country) dynamic model from the example of Korea, this article carries anempirical research on the relationship between China’s foreign direct investment (FDI) andexport trade (EX). The results indicate that there is a long-term equilibrium relationshipbetween them, and the development of foreign direct investment helps to promote thedevelopment of export trade in the long run. Finally, based on the conclusions drawn by themodel, advices on China’s foreign direct investment and export trade are put forward.