A Study Of The Impact Of Chinese Manufacturing's Outward Direct Investment On Export Value Added

After the financial crisis of 2008,the imbalance of the world economy intensified,all countries especially developed countries began to set tariff and non-tariff barriers to their trade partners.The exporters of China are facing serious challenges.At the same time,China's OFDI develops very fast,the relationship of OFDI and exports has always been the focus of the international economy.So the study of the influence of OFDI on trade has great practical significance.Because processing trade accounts for a high proportion in the trade of China,the customs statistics of exports will overestimate the real gains of China,so the paper use the export value added instead of export to study the influence of investment on trade.The paper probes the influence of Chinese manufacturing's OFDI on the scale and structure of export value added from theoretical and empirical aspects.The empirical analysis is based on the basic theory of investment and trade.On one hand,the paper analyzes the influence of the whole OFDI?the path-wise OFDI and inverse OFDI on the scale of export value added;on the other hand,the paper analyzes the influence of the whole OFDI?the path-wise OFDI and inverse OFDI on the structure of export value added.All in all,the paper intends to answer the following questions:first,whether the whole OFDI?the path-wise OFDI and inverse OFDI will promote the increase of export value added,that's to say the OFDI and export value added exist substitution effect or complementary effect.Second,whether China's whole OFDI?inverse OFDI and the path-wise OFDI will promote the optimization of the structure of export value added.At the same time,OFDI has lagged effect on export value added,so the paper has added the influence of late stage OFDI on export value added in empirical analysis.In this paper,OFDI is divided into path-wise OFDI and inverse OFDI.The contests of the paper include six chapters.The first chapter is introduction part,this part raises the problem to solve and elaborates the significance of the selected topic?literature review?research framework and method?innovation and deficiency of the paper.The literature review includes the relevant literature of OFDI's influence on export and the relevant literature of export value added.The second chapter introduces the related theory of investment and trade including the Marginal Industry Extension Theory?the Product Life Cycle Theory?the International Production Compromise Theory?Theory of heterogeneous enterprises.The third chapter analyzes the current situation of Chinese manufacturing's OFDI and export value added.First of all,the paper analyzes the total?regional distribution and the distribution of investors based on the data of the Statistical Bulletin of China 's Outward Foreign Direct Investment.Then,the paper analyzes the total?regional and industrial distribution based on the data of WIOD.The forth chapter elaborates the path of OFDI in export value added.The contents of the chapter include the path of various types of OFDI in the scale of export value added and the path of various types of OFDI in the structure of export value added.The fifth chapter is the empirical part.In the part,export value added is obtained from WIOD,OFDI is obtained from<<the Statistical Bulletin of China's Outward Foreign Direct Investment>>,the final data includes the export value added and OFDI from China to other forty-two countries.At last,the paper draws the following conclusions through the Gravity Model:first,in the aspects of scale effect,the whole OFDI?the path-wise OFDI and inverse OFDI can promote the growth of export value added.In terms of the lag effect,OFDI has the stronger effect on export value added over time.In terms of significance,the overall OFDI and inverse OFDI have significant influence on export value added,and the path-wise OFDI don't have very significant influence on export value added in initial stage,but the influence of the path-wise OFDI on export value added will become more and more significant over time.Second,in terms of structure effect,the whole OFDI?the path-wise OFDI and the inverse OFDI of manufacture can promote the structure of export value added,but the path-wise OFDI and the inverse OFDI influence the export value added in different ways.The inverse OFDI can promote the structure of export value added by promoting the ratio of productive service industries,while the path-wise OFDI can promote the structure of export value added by reducing the ratio of resource industries and promoting the ratio of productive service industries.The final chapter elaborates conclusions and suggestions.Based on the theoretical and empirical results,the paper puts forward the following suggestions:First,the government should take active measures to facilitate the trade and investment.Second,the government should adjust the number and direction of investment in developed and developing countries.At last,multinational companies should establish their own international strategy based on their strength and surrounding environment.