The Trade Effect Research Of China Direct Investment In Myanmar

International trade and international direct investment are the very significant economical method between countries,both of them play the important roles which can’t underestimated.With the development of economic globalization and large multinational corporations,international direct investment is becoming more and more important.Since reform and opening-up in 1970 s in China,the economy has maintained a healthy high-speed development,and Comprehensive National Power is increasing highly,campare with “bring in”,our government pay more attention to “go out”.The positive development of foreign direct investment is benificial to the sustainable and healthy development of China’s economy.the “Belt and Road Initiative” advocated to resolve the excess capacity of domestic,and also encourage the Chinese enterprises “go out”,it’s has the great sense to promote the transformation of economic development mode and industrial structure transformation,expand China’s economic development space,guarantee the sustained and stable development of the domestic economy and solve the problem of regional economic development imbalance in China.Myanmar is located in interchange of Southeast Asia and South Asia,to China,Myanmar is also the shortcut to the Indian Ocean on land.“Belt and Road Initiative” advocated,Myanmar is the significant point of “the Silk Road Economic Belt” and “21st-Century Maritime Silk Road”.Except the geographical advantages,Myanmar also has a wealth reserves of hydropower,minerals,gas and other important resources and labor advantages,from the resource endowment and industrial structure,China and Myanmar are highly complementary.So develop economic and trade relations with Myanmar,has an unusual significance to promote China’s economic development and consolidate China’s strategic security in Southeast Asia.The traditional theory of international investment thought that a country’s foreign direct investment in another country will have an impact on the import and export trade between this two countries.In this paper,combines the economic and trade relations between China and Myanmar,First of all,the history and status quo of bilateral trade and investment situation of Myanmar were investigated in detail.Then,on the basis of previous research,the use of national trade and investment theory to analyze the effect of China and Myanmar investment in bilateral trade in long and short period.According to the analysis,in long period,China’s direct investment in Myanmar has played a catalytic role in bilateral trade.At the end of this paper,from China and Myanmar’view,particularly in China’s macro,micro perspective puts forward some policy suggestions,in order to promote a healthy,coordinated,sustainable development of bilateral economic and trade relations.