Foreign Direct Investment And China's Foreign Trade Efficiency

For a long time, the international trade has been the dominating way for a country to participate in the international division and takes up a leading role. However, after the Second World War, the foreign direct investment (FDI) suddenly rises and has gradually replaced the international trade as the dominating way in many countries. The scale and influence of the latter has surpassed the former and is said to be a new engine to push forward the world economy. The synchronous development of the FDI and international trade in world scope has constituted together an important propelling force to the promotion of world economic development. Under the integrated tendency of trade and investment, it is necessary to reexamine the mutual relations of FDI and international trade and the part they play in advancing the economic growth of the world. The World Investment Report in 1996 has clearly pointed out that the relation between the FDI and international trade is extremely critical. Holding the relation, it will have a joint effect and have a more widespread and profound influence on economic growth and development. Ignoring the relation, the contribution trade and investment does respectively to the development will both be affected.Since the reform and the opening up, the fast development of our foreign trade has a close correlation with FDI. The massive FDI wells into the country and has promoted the rapid development of the foreign trade and made great contributions to the continuous economic growth of our country. The connection between the FDI and the foreign trade is closer than any other time and FDI has not only influenced the import and export scale but also accelerated the improvement and optimization of the export commodity structure. Under this background, to study the relations between FDI and the Chinese foreign trade benefit and to appraise the influence of the FDI on Chinese foreign trade benefit objectively and accurately has not only possessed...