The Export Effect Of China's Outward FDI To Asia

Under the drive of different investment motivations,outward foreign direct investment(OFDI)would generate heterogeneous export effect.China's OPDI has gain a great development since 2003 and has cast important influence on export trade.Asia has always been an important cooperative partner of China's foreign investment and foreign trade,however,the development of China's foreign trade in recent years wasn't ideal and foreign trade to Asia has shown a negative growth rate.Along with the effective implementation of the One Belt and One Road strategy,Asia will offer China's foreign investment immense market size.Therefore,we should bring OFDI's promotion role to foreign trade into full play and provide new entry point for many problems that China's trade exports to Asia now face.This paper,based on the basic status of China's OFDI and export trade to Asia,analyzed investment motivations of different target markets from the perspective of investment motivation according to the information of business scope in the list of foreign investment enterprises,and also analyzed export effects generalized by different investment motivations theorectically.This paper chose the data according to China's OFDI and export trade to 24 Asian countries from 2004 to 2015 to build a measurement model and then perform an empirical analysis on the export effect of China's OFDI to Asian countries.The fitting result showed that the overall export effect of China's OFDI to Asian countries is significantly positive and trade service OFDI creates a significant export promotion effect.Investment flows under resource development OFDI have promoted the export of mechanical products.local production and sales investment stock stimulated the export trade of raw materials,intermediate products and spare parts in home country.Moreover,investment stock under R&D OFDI generated insignificant negative effect on export trade;for the control variables,the effect of GDP on export trade is significantly effective.According to the aforementioned results of theoretical study and empirical analysis,this paper offers countermeasure and suggestions for the export trade effect of China's OFDI to Asia based on an open perspective: first,diversified investment motivations can influence export trade and resource development OFDI,export trade of mechanical equipments,foreign investment by manufacturing industry should all be encouraged.moreover,export of intermediate products should be promoted,trade service OFDI should be enlarged to promote the overall export effect.R&D OFDI should be enhanced to promote the core competency of enterprises.Choosing the best host country for investment could not only lower the risk of oversea investment,but could also help enlarge the export effect.Enterprises are the subject of oversea investment and should innovate enterprise system and enhance the quality of oversea investment.Last but not least,our country should promote the regional strategic cooperation in Asia actively and enlarge the economic and trade cooperation with Asian countries.