Research On The Relationship Of FDI、International Trade And Economic Growth In Anhui Province

The topic about economic development has always been focused by worldwide economists, and so does the research about whether and how Foreign Direct Investment (FDI) and foreign trade influence one country’s economy. Since the reform and opening-up in 1978, Anhui’s economy has grown rapidly, along with its FDI inflows and foreign trade. Hence, in some ways there might be some kind of dynamic relationship among them, which has to be verified through empirical analysis. Through the study not only can Anhui’s economic openness and growth be fully revealed, but some practical suggestions can be presented to further develop Anhui’s export-oriented economic development. Therefore, studying the relationship between FDI, foreign trade and economic development in Anhui has great realistic significance.This thesis has four parts. The first part is about literature review, basic theoretical knowledge and the impact mechanism of FDI and foreign trade on economic development. the second part, the general situation of Anhui’s years of economic growth、FDI and foreign trade are detailed analyzed from a range of aspects, such as total amount and distributed structure. The result shows that the total amount of Anhui’s economic output、FDI and foreign trade grows fast, but their distributed structure is unbalanced. In the third part, using data from 1985-2013, the correlation analysis and empirical analysis on the relationship between FDI, foreign trade and economic development in Anhui are conducted. The correlation analysis indicates that their growth has a high synchronism, but Anhui’s economic aggregate has a low degree of dependence on its foreign trade and FDI, while the change of economic aggregate is not sensitive to the change of foreign trade and FDI; The empirical results show that in the short term only imports promote economic development, while in the long term economic development is influenced by imports, exports and FDI, and what is more, imports have the greatest influence, whereas FDI have the minimum influence.In the last part, some positive suggestions are presented to promote Anhui’s export-oriented economy based on the empirical results above and the status quo in Anhui.