The Analysis On Trade Effects Of Chinese OFDI In Australia

With the further implementation of "Going-out" strategy,China is speeding up the pace of investment in Australia.Both China and Australia are important countries in the Asia-Pacific region.Since 1972,the formal establishment of diplomatic relation were made between the two countries,bilateral economic and trade of the two countries have entered a new era of rapid development,especially after entering twenty-firstly Century.Based on relevant theories of trade effect of OFDI,according to the research context from theoretical analysis to empirical analysis,this paper studies the trade effect of Chinese OFDI in Australia.First of all,this paper has a general overview of Chinese OFDI in Australia and Sino Australian trade from two aspects of the scale and structure,then elaborates the trade effect and the mechanism of Chinese OFDI in Australia in brief,which lays a theoretical foundation for the following empirical analysis;Secondly,this paper selects the data of Chinese OFDI in Australia,import and export between the two countries,export of manufactured products and capital and technology-intensive products,and then do regression analysis between OFDI and import,OFDI and export,OFDI and export of manufactured products,OFDI and export of capital and technology-intensive products by means of co-integration analysis and error correction model.Regression results show: in terms of total trade,Chinese OFDI in Australia plays a significant role in stimulating the import and export trade between China and Australia,and the effect on import is larger than on export;in terms of trade structure,Chinese OFDI in Australia drives the growth of export of manufactured products and capital and technology-intensive products,which means Chinese OFDI in Australia makes a contribution to the upgrade of Chinese export trade structure.In addition,the two trade effects have a lag period.Finally,based on the conclusion of the research and in consideration of the current situation of investment and trade between China and Australia,put forward some countermeasures and suggestions from three aspects of the government,industry associations and enterprise level,in order to expand the scale of Chinese OFDI in Australia,make full use of the trade creation effect of OFDI,and further enhance the level of cooperation and trade between China and Australia.