Research On The Impact Of OFDI On China’s Export Trade Of Mechanical And Electrical Products To Africa

The current global situation is changing,the trade friction between China and the United States is heating up,unilateralism is also on the rise,and the haze of the epidemic has caused a strong impact on the global economy.Our country’s foreign trade development is facing a severe test now.Africa is a new hot spot for investment and a comprehensive strategic partner of China.China-Africa economic and trade cooperation has ushered in a new historical opportunity.Based on this,this paper attempts to explain the mechanism of OFDI on mechanical and electrical product trade through the study of the impact of OFDI to Africa on the export of mechanical and electrical products,in order to provide relevant theoretical basis and suggestions for our country’s future OFDI in Africa.The paper focuses on the analysis of the trade effect of African OFDI on China’s export of mechanical and electrical products to Africa.On the basis of literature review and current situation analysis,the two research centers of OFDI and mechanical and electrical products are deeply analyzed from different levels and angles,not only to discuss the trade effect of OFDI from the two aspects of investment flow and investment stock,but also to subdivide the mechanical and electrical products based on the total export trade of mechanical and electrical products,and to analyze the trade effects of mechanical and electrical products from the perspectives of country differences and structural differences.Export trade is carefully studied.Finally,relying on the theoretical model,this paper explores the effect of OFDI and mechanical and electrical products on African export trade.In addition,the discussion of OFDI involved in the aid process is added in the research process,and it is used as a part of the variables in the model robustness test in the empirical analysis.Based on the UN Comtrade database,China’s foreign direct investment statistical annual report,relevant data indicators of the World Bank database,CEPII database and China’s foreign aid database from 2000 to 2014,this paper explores the impact of China’s OFDI on 41 African countries and China’s export trade of mechanical and electrical products.And using fixed-effects model,2SLS instrumental variable regression and GMM dynamic panel regression and other methods,on the basis of ensuring the robustness and feasibility of the model,the impact of China’s OFDI on four different types of mechanical and electrical products on Africa’s export trade was investigated respectively.Finally,two cases of China-Africa cooperation are introduced as a supplement to the empirical analysis to present the impact of OFDI on mechanical and electrical products in the form of cases.This paper draws the following conclusions through theoretical and empirical analysis:(1)In both long-term and short-term perspectives,OFDI in Africa has a creative effect on my country’s export trade of mechanical and electrical products in Africa,and the long-term trade creation effect is stronger than the short-term.(2)The effects of African OFDI on the four types of mechanical and electrical products are similar,all of which are positive,and there is no trade substitution effect.(3)Aid to Africa can promote the export trade of mechanical and electrical products to Africa,but its effect is weaker than OFDI.Finally,according to the research and analysis,we know the African OFDI has a positive effect on our country’s export trade of mechanical and electrical products to Africa.Then the following recommendations are made in this paper:the government should play a leading and coordinating role,increasing the scale of investment in African countries;strengthen Policy support to promote the construction of the investment service platform for Africa;to expand the scale of aid,optimize the investment structure,and strengthen the link of aid to trade in mechanical and electrical products between the two sides,with a view to promoting our country’s export of mechanical and electrical products to Africa through OFDI in Africa.