The Analysis On The Relationship Between FDI And The Technical Content Of Export Commodities

As Chinese export trade activities have become increasingly frequent; they haveattracted more and more attention from the academic circles on the raise of technicalcontent of export commodities. After China joins WTO, the international trade and theinflow of FDI are both increasing rapidly, and at this time, China has become the biggestexporter and the largest foreign capital inflow country in the world. China takes advantageof foreign investment which has shown its effect on technical content of exportcommodities through technology spillover, inter-industry effects and technologyinnovation. In order to improve the status of Chinese export trade in internationalcompetition, it has become a hot academic focus for the research on technical content ofChinese export trade products. The scholars at home and abroad have come up withdifferent kinds of definitions of technical content of export commodities. With more andmore foreign investment has been taken full use of, it has a certain significance to promotethe development of our country’s economy and status in international competition to studythe relationship between FDI and technical content of Chinese export commodities.Firstly, in this article, the relationship between the FDI and the technical content ofexport commodities at both home and abroad is systematically stated through referring torelevant literature, and the theory basis of this article is disciplined. Based On this theory,this paper analyzes the relevant concepts of FDI and the technical content of exportcommodities, and then describes the calculation method. At the same time, it has set up theempirical model among the FDI, the government research and development and thetechnical content of export commodities, and then it has put forward the approaches whichthe FDI can show its effect on the technical content of export commodities. In the thirdchapter, the article has analyzed systematically the different indexes about the FDI and thecalculation method for the technical content of export commodities on four targetindustries it has chosen. And the relevant statistics has come up with from1998to2012 which comes from the China Trade and External Economic Statistical Yearbook, ChinaStatistical Yearbook and China High-tech Industry Statistical. The article calculates theresults according to the define formula. The fourth chapter mainly sets up the panelempirical analysis model among the FDI, government research and development andtechnical content of export commodities to analyze the relationship among them. Theconclusion shows that there will be different impact on different industries when they takedifferent use of the FDI. FDI utilization for high-tech industries has significant role inpromoting the technical content of export commodities, however, the influence on thetraditional manufacturing industry is not obvious. At last, the article comes out the specificconclusion about the rational use of foreign capital.