Research On The Effect Of Foreign Direct Investment On Foreign Trade In Inner Mongolia

In today's world where globalization is accelerating,the scale of international capital flows is increasing day by day.Foreign direct investment has become a driving force for the development of foreign trade in a region,and it is also the main trend of foreign trade development.For relatively backward inland border areas,foreign direct investment not only can provide sufficient capital for regional economic development,but more importantly,it can promote foreign trade and thus promote economic growth.Therefore,foreign direct investment is of great significance to the economic development of inland border regions.In particular,the Inner Mongolia is an important hub for China's opening to the north,and an important hub for the construction of the "China-Mongolia-Russia Economic Corridor",which connects the east and the west,connects the north and south,connects Mongolia,Russia and European countries.It plays an important role in economic development.This article first summarizes the development characteristics of Inner Mongolia 's foreign trade and foreign direct investment,and analyzes the contribution of foreign-invested enterprise trade to Inner Mongolia 's overall foreign trade.Second,it studies the foreign direct investment of Inner Mongolia from the perspective of trade scale and trade structure.The effect of foreign trade was verified by the cointegration test and Granger causality test to verify the long-term equilibrium relationship between foreign direct investment and the total import and export trade volume of Inner Mongolia and the structure of import and export commodities,and a vector error correction model(VEC)was constructed.Analysis of short-term fluctuations deviating from long-term equilibrium.The results show that the reverse export effect of foreign direct investment on export trade in Inner Mongolia is greater than the export substitution effect,that is,foreign directinvestment promotes exports;the import substitution effect on import trade is greater than the import-induced effect,that is,foreign direct investment replaces imports.In general,the complementary effect of foreign direct investment on foreign trade in Inner Mongolia is greater than the substitution effect.The increase of foreign direct investment will reduce the proportion of primary products in Inner Mongolia 's export products,that is,foreign direct investment will play a certain role in optimizing the structure of Inner Mongolia 's export commodities,but the effect on the structure of imported commodities is not obvious.Finally,the complementary effects of foreign direct investment on foreign trade in Inner Mongolia and the optimization of the structure of export commodities are proposed to expand the scale of foreign direct investment,promote export trade growth,and rationally guide the flow of foreign direct investment industries,etc.for future development.