Research On Impact Of China’s Investment In ASEAN On Bilateral Intra

With the further development of economic globalization and internationaldivision of labor, international trade and international direct investment becomeimportant forces to promote the growth of the world economy, and the pattern ofinternational trade has been changed from traditional inter-industry trade tointra-industry trade as the main trade pattern. In the recent years, with CAFTA startedfully and officially, ASEAN has become the fourth largest economy of China’sforeign direct investment, and the bilateral intra-industry trade has gradually becomethe main way of trade between China and ASEAN. Therefore, to promote economicand trade development between China and ASEAN, it is very necessary to explore theimpact mechanism of FDI to intra-industry trade and systematically analyze theimpact of China’s direct investment in ASEAN to bilateral intra-industry trade.Based on the researches at home and abroad, we comprehensively use theoriessuch as new H-O model, natural oligopoly model, scale economy theory and demandpreference similarity theory, research the impact mechanism of FDI to intra-industry,specifically analyze the scale, nationality, industry and type of China’s directinvestment to ASEAN and the overall level and trade type of intra-industry tradebetween China and ASEAN, show that the development trend of China’s directinvestment to ASEAN and bilateral intra-industry trade exist consistency, and byvariable coefficient panel data model, we empirically test the impact of FDI onintra-industry trade, horizontal intra-industry trade and vertical intra-industry tradebetween China and ASEAN, and then, according to the empirical results, we deeplyanalyze the impact of China’s direct investment in every country from ASEAN tobilateral intra-industry trade, horizontal intra-industry trade and vertical intra-industrytrade and put forwards to promote the development of intra-industry trade betweenChina and ASEAN, we should perfect the investment policy, optimize the investmentstructure, obtain economy of scale, take the different strategy, and upgrade investmentcooperation.The empirical results show that the differences of economic level betweenASEAN countries lead to the diversity of China’s direct investment way to ASEAN,thus China’s direct investment to ASEAN may promote or suppress bilateralintra-industry trade. Therefore, in order to promote intra-industry trade between Chinaand ASEAN, optimize and upgrade industrial structure, and enhance the status of international division of labor and competitiveness of foreign trade, we need considerthe specific conditions of different countries, combine with the diversity of investmentways, implement different investment strategies to suit countries’ circumstances.