Research On Shanxi's Export Trade Effects Of Foreign Direct Investment

In his an important essay published in 1987,from world trade to world investment,Peter Drucker expertly developed that world trade was increasingly becoming dependent on investment and world investment would be more important as the major force in developing each country's economy.Nowadays,with the economic integration,Foreign Direct Investment,FDI,makes the multinational avoid trade barrier and open up new offshore market.In addition,FDI also renders host country enterprise access to international advanced technology so as to strengthen the competitive power of enterprises themselves.But foreign trade is still the engine of economy increasing now.More international and domestic academics focus on the synchronous growth of FDI and trade.As one of FDI effects,trade effect should be paid more and more attention.Since China's reform and opening up,introducing foreign investment in our country has experienced three important stages: exchange market for technology,attract large multinational to invest,change the pursuit of quantity to improvement of quality.As a member of the central province,Shanxi introduces foreign investment later than other fast-growing provinces.Shanxi Province approved the establishment of the first joint venture in 1984 and since 1985 Shanxi gradually introduce the foreign capital.The actual amount of FDI in Shanxi was $2.87 billion in 2015,an increase of about 6673 times over 1985.The export trade volume and GDP of Shanxi Province increased about36 times and 27 times respectively from 1985 to 2015.Obviously,the study on the impact of FDI on Shanxi Province's export trade is extremely important in order to promote the economic development of Shanxi and achieve a higher level of "introduction" and greater pace of "going out".Referring to the theoretical knowledge and empirical methods of domestic and foreign scholars,firstly,this thesis analyzes the status quo of FDI and export trade of Shanxi Province using data and charts.It shows the imbalance of FDI distribution among the three industries in Shanxi Province,the proportion of primary industry's FDIis the least,the proportion of tertiary industry's FDI increases year by year,the proportion of secondary industry's FDI in manufacturing is the largest.Moreover,the source countries of FDI are quite unitary,and funds from Hong Kong reaches more than50%.From the aspects of the export of Shanxi Province,the exports of manufactured goods and processing trade exports increase,but mainly concentrated in the low value-added,low-tech and high energy-consuming products exports.Secondly,this paper tests and makes regression analysis to the time series of FDI,export trade and other relevant datas of Shanxi province from 1990 to 2015,with the use of measurement methods including unit root test,Johansen co-integration test and so on,and the results show that FDI not only plays a driving role in the expansion of export trade scale and optimization of structure,but also has a significant role in promoting the exports of domestic enterprises.Based on the theoretical analysis and empirical results,this thesis proposes how to promote the development of export trade with the effective use of FDI in Shanxi Province.The first is to pay attention to improve the comprehensive service system,strengthen the transport capacity and improve the investment environment;the second is to optimize the source countries and the flow direction of FDI,keeping it in combination with the industry policy,and also focus on improving the technical spillover effect of FDI;the third is to improve the capability of domestic enterprises absorbing FDI,starting from colleges and enterprises,cultivate innovative awareness,carry out the cooperation of production,teaching and research,pay attention to R&D input,cultivate innovative talents of science and technology,speed up the transformation and upgrading of provincial export structure and promote the development of export trade.