Chinese Foreign Direct Investment In Empirical Research, China's Foreign Trade

The relationship between Foreign Direct Investment(FDI) and Foreign Trade(FT) in China, this top, has been mentioned so many times. What is the effect from FDI to Foreign Trade? Unlucky, when we faced to this top about the positive analysis between FDI and FT in China, We just use the flux volume but not cumulative volume, use the long term analysis but lack in short term analysis and we stress the collectivity analysis but lack for the analysis in the perspective of areas or industries. In this dissertation, author use the perspective of combining the long term and short term, flux volume and cumulative volume, collectivity and middle-micro to make a comparatively full positive analysis in relationship and the effect between FDI and FT in China. The first part of this dissertation is the introduction, which consist of the reference summarize and review, the frame of this dissertation. In the second of this dissertation author retrospect the course of FDI and FT in China since from Reformation and Open, and author make a simple analysis in the relationship between FDI and FT. The chapter three to chapter five in this dissertation, is focused on the positive analysis the relationship between FDI and FT in China from the perspective of collectivity, areas and industries. In the last chapter of this dissertation, author retrospects and summarizes the policies of introducing FDI. And then, author suggests his advice from his analysis.The major work and results in this dissertation are as fellows: 1 , In the collectivity analysis, author uses the Error-Correct Model to analyze the relationship between FDI and FT in China, in the perspective of combining the long term and short term. And author results in : in the long term , the positive correlation between FDI and Chinese's export and import, and the positive correlation is very clear in trade of finished products. However in the short term, the correlation is very unclear. And at the same time, author makes the result that the Time Lag effect from FDI to export is stronger than to import. 2, In the positive analysis from the perspective of areas, author uses the provincial data to analyze the effect from FDI to trade in the view of different areas. And author result in: the effect in East area is the biggest, in West area is comparative small, but in Middle area is none correlation. In the analysis of direct and indirecteffect, author makes result that, the direct effect is stronger than the indirect effect. The overflowed effect of FDI in so limited in area that the effect happens mainly in East area.3, In the positive analysis from the perspective of different industries, author uses the Processing Trade as a tool to analyze the effect from FDT to Chinese's foreign trade in different industries. And author makes a conclusion that FDI have effect on Chinese's finished products trade, mainly through the labor-intensive industry in processing trade.4, In this dissertation, author compares FDI with FDIC (Foreign Direct Investment Cumulation), and finds the FDIC is more effective and reasonable. So in this dissertation the FDIC is used as an interpretative variable, which makes the positive analysis more precisely.