Impact Of Foreign Direct Investment To China's Export Sophistication

Due to the global weak economic recovery in 2015,prospect of domestic economic downward pressure is larger,China's foreign trade development faces many difficulties.In 2015,according to customs statistics,China's trade in goods import and export is of 24.59 trillion yuan,the total cost of 7%lower than in 2014:the export of 14.14 trillion yuan,down 1.8%;imports of 10.45 trillion yuan,down 13.2%.Our country's export and import are both down,in terms of exports,the main reason is that external demand downturn.Since 2008,the international financial crisis has destroyed the world economic growth,international economy overall sluggish recovery,lead to global trade into the depth adjustment,thereby inhibiting the export growth in China.As an export-oriented developing country,being affected by the global recession,China's exports has encountered unprecedented challenges.Exports during the economic crisis showed a sharp decline,even after the economic crisis,China's export growth has slowed markedly,and the export situation is not optimistic.In order to solve the export stumble,we need to improve the technology content of exports,optimize the structure of export commodities to enhance export capacity.By contrast,China's foreign direct investment after the economic crisis has soared,and the flow of foreign direct investment has increased for years,the average annual growth rate from 2002 to 2014 is as high as 37.5%.According to the foreign direct investment statistical bulletin published in 2014,China has already become the world's third largest foreign direct investor in 2012.China's foreign direct investment jumped to an all-time high of $123.12 billion in 2014,and its two-way direct investment for the first time close to balance.Thus,after the economic crisis in our country export trade development growth is slowing,the development of China's foreign direct investment has ushered in the spring.As a result,whether China's foreign direct investment promote the improvement of the export commodity structure,and how to optimize the trade structure,in the current our country actively encourages and supports enterprises having conditions of "going out" and under the background of domestic export products structure to be optimized,study the relationship between the-two has important both theoretical and practical significance.This thesis revolves around the impact of foreign direct investment on China's export sophistication to carry out detailed in seven parts.The first part is the introduction,described the selected topic background,research significance,the structure of the framework,research methods and innovation and the insufficiency of this paper.The second part studies the relevant theoretical basis of this article.The third part is the literature review.Firstly,it introduced the general measure index of the technical level of the export;Secondly,summarized the related factors influencing the export technical complexity from internal knowledge,external knowledge and institutional factors;Finally,combed the foreign direct investment affecting export technical complexity of literature research from theoretical research and empirical research,providing a theoretical basis for this paper.The fourth part calculated China's export sophistication.It introduced the research on China's export technical complexity first,through the research of other scholars on China's export technical complexity,giving a general idea of our export products technical level compared with those in other countries;Then by selecting the measuring method,using China's 31 provinces' 21 categories of goods export data from 2003 to 2014,calculated the export sophistication of each product,province and the country and analyzed the results.It showed that,while under the influence of the economic crisis,the export of technology complexity has fluctuations,but it tends to rise overall.The fifth part is the development of China's foreign direct investment.From the investment scale,forms,industries,investors and regions,this paper discusses the development of China's OFDI situation comprehensively.In can be seen the foreign direct investment in China started late,but development momentum is very strong.The sixth part is an empirical analysis of the foreign direct investment to export sophistication.First by building a mathematical model to study the micro-mechanisms of how China's foreign direct investment affect export sophistication.It concluded that OFDI will significantly promote regional export promotion of the technical level.Secondly,according to the influence mechanism,from the empirical point,using the provincial panel data available to study China's OFDI how to influence export sophistication.The results showed that there is a significant positive correlation between the current expansion of China's foreign direct investment and export sophistication.Further,the regional empirical test showed that OFDI is a positive role in promoting export technical complexity in eastern,central and western,just degree of difference;Finally,it discussed the way how OFDI to promote the export sophistication.Section seven of this thesis is divided into two parts:the research conclusions and countermeasures.