The Impact Of Outward Foreign Direct Investment On Chain's Export Based On The Theory Of Three Margins

China's foreign direct investment has been increasing steadily since 2003,affecting the international economy.For a long time,researchers lay emphasis on scale and construction of export and seldom pay attention on the export margins.This paper divides China's export growth into three margins in order to study the influence pattern of foreign direct investment.It can be helpful for increasing the profits of China's foreign direct investment as well as perfecting the export construct.Basing on studying and summarizing related articles,the paper elucidates that how the foreign direct investment affects the export in three margins in the theory.Then,with the help of R software,this paper calculates and analyzes the related data about China's foreign direct investment and export while the export is divided into three margins:extensive margin,quantity and quality.In the end,this paper promotes an empirical analysis based on the bilateral data of 90 areas from 2003 to 2015.Results show that China's export is mainly depending on the quantity margin other than the extensive and quality margin.The extensive margin contributes steadily to the growth of export while the contributions of quality margin are fluctuation.It shows that the China's foreign direct investment has obviously export creating effect as well as hysteresis effect.And it affects the growth of export positively through the extensive and quantity margin.For the developed economy,there is no notable export creating effect but only positive effect of extensive margin.For the developing economy,there is notable positive effect for the quantity and extensive margin.As for the other factors,the effect is quite different.The empirical results are steady through the robustness test.At the end of this paper,it puts forwards the related suggestions.We suggest that the government should constantly promote the foreign direct investment to the developing country and courage companies to do more R&D activities for new product creating.