The Research On The Impact Of FDI On The Export Competitiveness Of Chinese Auto Parts Industry

During the development of the auto parts industry,China has implemented the policy of “Exchange-market-for-technology Strategy" to promote the progress of the industry.The entry of FDI has brought a lot of capital and technology into China’s auto parts industry.China’s auto parts industry has achieved remarkable results.However,the industry is still facing the dilemma of "big but weak",with problems such as insufficient R&D investment,low added value of export products,low overall export competitiveness,local enterprises also lack core advantages.A specific analysis of the mechanism by how FDI affects the export competitiveness of the auto parts industry and an empirical test can be used to comprehensively evaluate the role of FDI,then provide practical guidance for the future development of the industry.At first,this research sets forth some theories about FDI and export competitiveness.In the part of literature review,it explains the impact of FDI on industrial development,the channels of technology spillover,and scholars’ related research in the field of auto parts industry,to provide theoretical support for subsequent analysis.Secondly,it analyzes the development and export state of the auto parts industry,expounds the development process of FDI in the auto parts industry in stages,and puts forward the concept of “reverse investment” using the case of Zhongding Group;then it analyzes the impact of FDI on auto parts industry in detail.The impact mechanism of export competitiveness has concluded that FDI mainly affects the export competitiveness of auto parts industry by changing the influencing factors of export competitiveness.However,FDI has positive and negative effects.In order to objectively evaluate the comprehensive impact on the export competitiveness of the industry,selecting the time series from 1992-2017 and the empirical analysis is carried out through Eviews8.0.It mainly examines the long-term relationships between FDI,other influencing factors and auto parts industry’s export competitiveness.Then examine the short-term changes between them by establishing a VECM model.According to the research results,in the long run,the FDI inflow of auto parts industry promotes its export competitiveness,which proves that China’s policy of attracting foreign capital has practical significance.In addition,the trade openness and technology level of auto parts industry can also improve the export competitiveness,but both may have time lag,among which,the improvement of technology level has the greatest impact on the export competitiveness.During the short-term changes,the export competitiveness of the previous period will deviate positively from the long-term equilibrium relationship,but the negative correction can adjust the current change to the equilibrium state,although the FDI may also have a negative effect.But local enterprises create their own technology is the best way to resist risks,and open trade policy can provide a good environment for increasing the export competitiveness.Attracting FDI,improving technical level and trade openness will increase the export competitiveness in the long-term.In a word,in order to effectively enhance Chinese auto parts industry’s export competitiveness,Local enterprises must make full use of the technology spillover of FDI,increase investment in R&D aspect and improve the trade openness.Finally,specific policy recommendations are put forward based on the conclusions drawn from the empirical Research,such as government and local enterprise should promote "reverse investment",cultivate professional talents,improve the technological level and prevent export risks.