Mechanism Analysis Of Foreign Direct Investment's Effect On Native Export Competitiveness

The development of economic globalization enhances the flow of all elements around the world. As the colligation investment, foreign direct investment (FDI) attracts more attention. Export reflects a country's competitiveness in the international market. The main body of FDI is multinational corporations. The effect of FDI on host country's export trade is remarkable. Recent years the amount of FDI flows into china is increasing steadily and the structure of supply and demand in the domestic market is changing, which drives the government to adjust relevant policies. The purpose to use FDI changes from expanding export, optimizing export structure to improving the export competitiveness. This paper starts with the research on relationship between FDI and export competitiveness. Compared with former researches, this paper focuses on the mechanism, which is how FDI effects export competitiveness. The purpose of this thesis is to give some references for how to use FDI effectively.The conclusion of this thesis is that FDI's effect on export competitiveness is significant. But the force varied from different factors. It adopts the grey relevancy method to sort factors by their significance. The outcome of the empirical analysis from strong to weak is as follows: technology, balance of payments, competition in the same industry, relative backup industry, demanding term, human resource, industry structure, environment of investment, income of inhabitant, culture, optimizing the industry structure. As a whole, the force of factors in macroscopical lay is stronger than in corporation lay. Accordingly to improve the export competitiveness, the local government should adjust the policies of attracting the FDI.