Research On Optimization Of China 's Export Commodity Structure Based On FDI

In the power of ecomomic globalization,reform and opening up of China, Chinahas made remarkable achievements in economy. The Multi-National Corporationactive in the international stage as well as the international division of labor to makeChina continuously into the internationalization tide. Recently, FDI increasinglytouches various industries and fields of China, the huge investment scale, stronginvestment, as well as the large amount of export quality making the FDI accounted alarge proportion in foreign trade. But FDI also showed a series of characteristics,such as different investment objectives, and obvious difference in the flows ofinvestment, these characteristics making the imbalance and commodity structuredifference more apparent. The dual attribute of FDI “strength” and “weakness” showundoubtedly. At the same time, in this new situation, China’s overseas markets havebeen hit a wall,“anti-dumping”,”anti investigation” of the “dual” treatment makeChina realized that the structure of the export commodity need adjusted. Therefore，the relationship between FDI and Chinese export commodity structure optimizationstudy is around the corner. If the correlation between FDI and Chinese exportcommodity is true, the policies of China investment need make correspondingadjustment, which will have a positive significance for the optimization of China’sexport commodity structure.Based on this study, statistical data first collected for more than27years from1985to2012, literature analysis, normative analysis and empirical research, as wellas the the combine of the quantitative and qualitative research methods are applied inthis study, in this study confessed one by one of the changes in FDI actually used inthis27years, such as the development of FDI and FDI characteristics; as well as thechanges of export commodity structure in this27years, such as structural changes ofexport commodities. Further quantitative analysis points to FDI contributions toboost China’s export structure.Secondly, the empirical analysis used in the correlation between FDI and theoptimization of export commodities structure, which including the ADF test analysis. Taking the ecomomic circumstances of systemic into account, innovativebreakthrough study of model simplification, will affect the structures of exportcommodities, foreign direct investment, trade openness and factor endowment,industrial structure also into the model. Final results showed that there is a strongcorrelation between FDI and China’s export commodity, FDI increases1%,merchandise export structure optimized0.451201%.Finally, based on the reference, normative and empirical analysis, quatitativeand qualitative analysis, puts the present that FDI has negative effects on theimprovement of the export commodity structure, at the same time, walk with aforeign investment, further recommendations to improve the structure of exportcommodities are mentioned in this study.