The Analysis On The Trade Effect Of FDI Of Marginal Industy In China

With the new change in international economic pattern, Foreign direct investment has become one of the most important and active factors in promoting development of countries'economy in the world, developing countries'FDI has form a phenomenon which could not be ignored in the international economic relationship. The research of developing countries'FDI already has became the forefront and hotpoint of theory. After proposed the "going out" strategy, especially in recent years, China enterprises'FDI has developed rapidly, FDI plays an important role on China's foreign trade and development of national economy. FDI's complementary impact to our export is more than substituting function to export in a lot of the research literature. However, is the complementary impact or substituting function to specific industry between FDI and trade? Which influence will have to the adjustment and upgrading of domestic industrial structure? This paper takes research that trade effects of FDI from the perspective of Marginal Industry, and finds the principle and final result which FDI of Marginal Industry changes the trade volume,trade structural and surplus transfer.At the background of international industrial transfer and upgrading of industrial structure in China, the main point of this paper is analyizing trade effects of FDI to marginal industry objective and how to expand trade effect. At first, thesis defines the background and meaning,based on review of theory between trade and investment ,this paper focuses on the basic situation of foreign trade and FDI of marginal industry at present in China . During discuss the trade effect of FDI of marginal industry in China, this paper deeply analyzes the effect from trade scale, trade structure and trade surplus transfer. In the process of FDI of marginal industry, expanding the trade scale directly and indirectly through establishing overseas marketing networks, collecting market information, avoiding trade barriers and learning the advanced technology from developed countries. At the same time, the paper analyzes the relationship between foreign trade and FDI by the data of foreign trade and FDI of marginal industry. The conclusion is that FDI plays an important role in boosting trade.FDI of marginal industry could optimize the structure of export trade, also alter the export goods'strucure, and transfer national trade surplus by investments from developing countries and regions. The argumentation is that FDI of Marginal industry could expand the scale of foreign trade, optimize the structure of export trade and transfer trade surplus partly.To expand the trade effect of FDI of marginal industry, policy system for promoting the trade effect of FDI of marginal industry should be established, and investment to developing countries in Asia, Africa and Latin America should be strengthened . Meanwhile, we should pay attention to the impact of industry associations.