A Study On The Trade Effects Of Chinese Outward Foreign Direct Investment In Mongolian Mining Industry

The Belt and Road Initiative,Mongolia's “Steppe Road” Program and ChinaMongolia-Russia Economic Corridor(CMREC)have created good opportunities for mining investment and economic and trade cooperation between China and Mongolia.In the current international situation,China needs to establish natural resources cooperation mechanism with resource-rich countries,and further improve the pattern about resource development,trade and investment.It is necessary to explore how to establish a good partnership with Mongolia which satisfies China's resources demand.In this context,based on the research of the theory and practice of China's mineral OFDI and trade relations,this thesis studies the trade effect of China's OFDI in Mongolia mining industry.Combined with the analysis of the predominance and existing problems,this thesis has a general overview of China's OFDI in Mongolia mining industry and SinoMongolia trade from two aspects of scale and structure,then further explores the trade effect and the function mechanism of China's OFDI in Mongolia mining industry.This thesis studies the long-term and short-term relationship and the trade effect of China's OFDI in Mongolia mining industry qualitatively by using the method of co-integration test,error correction model(ECM),the Granger causality and robustness test.The results show that :(1)China's OFDI of mining industry in Mongolia has a trade creation effect and can promote the total trade volume of the two countries,but in the short term,it substitutes part of China's export trade;(2)the close relationship between China's OFDI of mining industry in Mongolia and the two countries' trade continues to improve and it turns out that there is a complementary effect between them;(3)China's OFDI in Mongolia mining industry promotes exports of manufactured products and capital and technology-intensive products,which also makes contribution to the optimization and upgrade of China's export structure.Finally,the thesis proposes the policies and suggestions from the government and corporate perspective,which can promote the healthy development and upgrading of the investment in mining industry and trade cooperation between the two countries and make full use of the trade creation effect of OFDI.