Research Trade Effect Of China's FDI In Mauritania

After reform and opening up proposed by intellectual Deng Xiaoping, China's economy started to grow much faster than other developing countries, especially when imbalance occurred in the development of global economy. However, there is almost a semi-consensus that China is able to assume this position. Accordingly, the rapid economic development of People's Republic of China in the past 20 years, averaging 8%-9% annually, has major impact on the growth and development of the world economy.As we all know, since 1950 China started to support African countries and help them solve some problems, among those countries Mauritania was one of the first countries who voted for China to be a member of the United Nations (on 25th, Oct, 1971, the 26th meeting of UN). When China achieved this high position, it didn't forget those African countries that provided support, so Chinese government did a lot to aid those countries and to cooperate with them on term of trade, especially construction of harbors and airports to facilitate the transportation of trade goods. China also started to flow funds into African countries to aid and encourage their business investment. On the basis of"going out"strategy, China's investment to Africa speeded up and began to take shape. The source of China's investment in Africa is versatile, the main investment field and target market are comparatively focused, and the investment has achieved good benefit, but problems still exist.This paper focuses on the determinants of the foreign direct investment (FDI) and its impact on trade with Mauritania, especially the Chinese enterprises investment in some industries of Mauritania and the relevant strategies.The full text is divided into 3 parts: part one describes the past and current situation of FDI and briefly reviews a theoretical research of China and other countries in the fields of direct investment that makes comprehensive analysis of the historical development of a current economic situation in China and African countries and, according to the relevant research of the direct investment theory, proposing a real need and feasibility in theory of FDI to Africa.Part two makes a deep analysis of the current situation of Mauritania's economic development, and shows the real face of the Mauritania resources and government policy. Part three shows the effect of chinese investment on Mauritania with Granger model to show the impact of the relations between chinese FDI and export from Mauritania. China's significant direct investment in Mauritania and the African nations at large to improve the prospects for growth and development plays a vital role in friendship.