Empirical Analysis of the Effect of Foreign Direct Investment on Export Trade in China

Abstract: This thesis makes a systematic and relatively deep research on correlation between theeconomic phenomena of the large-scale growths of FDI flowing to China in term of generalvolume and rapid increasing of total amount of foreign trade since the reform and opening tothe outside world. The combination of methodology of theoretical analysis and case study isused,firsttoillustratetheoreticalmechanismofmutualdevelopmentbetweenFDIand international trade;then to verify correlation of FDI growth and the growth of totalvolume of China's export trade with adequate and detailed data and econometrics todemonstrate the effective promotion of FDI to the China's foreign trade structure fromstructure of commodity,structure of nations ,and finallyto point out the existing problems ofenterprises established through FDI on how to promote the development of China's foreigntrade. This thesis also brings forward some practical countermeasures aiming at how topromotethedevelopmentofChina'sforeigntradebyusingFDI…
Key words: Foreign Direct Investment; Upgrading of Industrial Structure; Countermeasure

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