An Empirical Analysis Of Foreign Direct Investment In Shanghai’s Export Trade Impacts

As the world economy getting increasingly prominent, the relationship between foreign direct investment (FDI) and international trade has becoming more closely. In China, since the reform and opening up policies in1978, the development of international trade has made considerable progress as will as the utilization of FDI. The relationship between FDI and international trade has been a new study to many domestic and foreign scholars. This paper mainly analyses the relationship between FDI and export trade in Shanghai.Based on the micro-and macro international direct investment theory, this paper analysis the relating annual data of1990to2012and summarizes the status of FDI and export trade in Shanghai. Then using EViews software to verify the influence of FDI in the primary products, manufactured goods, machinery and electronic products and high-tech products; It also studies the Grainger causal relationship between FDI and exports of general and processing trade. Finally, this paper summarizes the conclusions and put forward a several specific countermeasures and suggestions.The empirical analysis shows that the FDI has a significant role in promoting the total amount of export trade in Shanghai with a delay for two years and optimize the structure of the export commodities. Over the long run, for each additional1%of FDI, the exports of industrial manufactured goods increased by2.78%. The Guiding role of the FDI on general export trade is significant, while processing trade is not.Overall, although FDI promote the city’s export trade, it is necessary that Shanghai has to adopt a series of policies to enhance the competitiveness of its exports by FDI.