The Research On Trade Effect Of China’s Outward Direct Investment In RCEP Member Countries

At present,the world is undergoing a global transformation of international politics and economic order and the global epidemic pandemic.The development of economic globalization and world multipolarity is in a tough time,which profoundly affects international investment and trade relations.Initiated by ASEAN in 2012,the signing and entry into force of RCEP,which is the free trade agreement with the largest volume of the global economy and the largest population,will inject new impetus into the recovery and growth of the Asia Pacific region and even the world economy.As an important expression form of the open economic development of a country,foreign direct investment and trade are closely related.This paper attempts to answer two questions:1.Can China’s direct investment in RCEP member countries promote the trade development of home country?2.What is the specific situation of China’s direct investment in RCEP members to promote trade? On the basis of summarizing and thinking about the existing relevant literature,trying to sort out the transmission mechanism of the affect of foreign direct investment on trade effect,that is,China’s direct investment in RCEP member countries can promote the expansion of trade scale,optimization of trade structure,trade efficiency and trade competitiveness.On the basis of theoretical analysis,using trade gravity model to making empirical analysis by using the relevant economic data of trade and investment between China and RCEP member countries from 2003 to 2020.The results show that,on the whole,China’s direct investment in RCEP member countries can promote the trade development.Specifically,China’s direct investment in RCEP member countries has a positive role in promoting the scale of trade exports and trade imports,while there are some differences between trade exports and trade imports.In addition,China’s direct investment in RCEP members can promote the improvement of the trade efficiency,but it does not promote the improvement of the trade competitiveness.Based on the conclusions,this paper attempts to give some suggestions on four aspects: First,promote the coordinated development of outward direct investment and trade;Second,optimize the layout of key industries of China’s direct investment in RCEP members;Third,improve the level of technology reverse spillover generated by China’s direct investment in RCEP members;Fourth,enhance the competitiveness in export trade with RCEP members.