Study The Effect On Export Trade Of China Foreign Direct Investment

Nowadays economic globalization is accelerating with the development of the science and technology. As the main two forms of participating in economic globalization, international direct investment and international trade are also integrating and deepening.From the perspective of national economic development strategic, besides "bringing in", international direct investment is more concentrating on "going out". Nowadays all the world economic superpowers are big Outward Foreign Direct Investment (OFDI) nations, firstly, OFDI can help home country break through quota restriction, reduce the exports of sensitive goods, increase the exports of machinery equipment and intermediate product in order to bypass the trade barriers and protect the foreign markets; secondly, OFDI can help home country expand the production of the comparative advantage industries by reducing the marginal industry, which leading to the adjustment and optimization of the industrial structure; thirdly, OFDI can help home country gain advanced and applicable technology at low cost, to enhance domestic technology level, and realize the upgrading of industrial structure as well as the change of the trade structure. Fourth, OFDI can help us to get scarce resource back to home country to produce goods.Recently there always having broken the international financial crisis, and global economic imbalances become worse and worse, most nations had taken measures to protect its economy. China’s export trade is facing severe dilemma, in order to solve it, we need to turn to OFDI. China’s OFDI has made certain achievements since the "going out" strategy put out in2001.China’s OFDI is gradually developing as the export trade suffering serious trade frictions, industry structure being adjusted and the transition of export trade structure, then the research on relationship between China’s OFDI and export during this period has great theoretical and practical significance. The dissertation tries to study the China’s OFDI trade effects from the perspective of export since The Reform and Opening, to explore the function mechanisms and final effects on China’s export trade volume change as well as export trade structure transition by using data. Firstly this dissertation summarizes the theoretic and study relating what the effects of OFDI on home country’s trade. Then it connects with the status quo of China’s OFDI and export to discuss the effect on export trade of China foreign direct investment from the standpoint of Multi-National Corporation, after that this dissertation begin to adapt the model to test the effects of China’s OFDI on country’s trade, and it found that China’s OFDI had great creation effect on export. Finally this dissertation finds out some suggestions about the interactive development of China’s OFDI and export trade from the standpoint of Multi-National Corporation and the Chinese government.