Study On The Effect Of Foreign Direct Investment On Mvanmar's Import And Export Trade

The globalization of the world economy has become the background of the world economic development.Under this background,Myanmar has also become one of the countries that have opened the door to the outside world.Although FDI has been flowing into Myanmar,it has been tiny.It was until 2010,when political and economic reforms began,that foreign capital began to pay more attention to the country.In view of the impact of foreign direct investment(FDI)on the growth of import and export trade,there are three different conclusions in the theoretical circle:substitution relationship,complementary relationship and uncertainty relationship.And in Myanmar,a country just beginning to reform and open up,how is this theory explained,which is what this paper will study.By using the unit root test,co-integration test,granger causality test and other methods,this paper empirically studied the relationship between import&export(IM&EX)and foreign direct investment(FDI)approved annually in Myanmar from 2002 to 2017.According to the empirical results,firstly,FDI is not the main driving force for the growth of Myanmar's annual export and import.Secondly,Myanmar's FDI either invests in the tertiary industry,or exports products with low added value and technical content,so the market share of exports to the world is not large,which results that the impact of foreign direct investment on Myanmar's import and export trade in the long-term,but it is very weak.Finally,the paper puts forward some countermeasures and suggestions for Myanmar to use foreign capital to promote the growth of foreign trade.1,From the macro and micro aspects to optimize the investment soft environment;2,Efforts to improve supporting capacity,to extend the trade industry chain and 3,Adapting to globalization.