The Empirical Analysis Of The Influence Of The Foreign Direct Investments On China's Export Product Structure

Ever since the 1990s, China's foreign trade and utilization of foreign direct investment have achieved tremendous growth. With the acceleration of the economic globalization process, the foreign capital inflows to China have increased by 28. 9% every year. China has become the second largest foreign capital inflow country in the world next to US since 1993. From the structure of the foreign capitals, FDI has accounted for over 70% of the total utilization of foreign capitals since 1993 and the ratio is increasing year over year. China has experienced fast growth in exports, from US$222. 3 million in 1983 to US$5933. 6 million in 2004, increased by more than 26 times in 22 years with the average of 16. 1% yearly growth. Especially after China's entry into the WTO, it shows rapid steady growth. In the meanwhile, the structure of China's export commodities has had significant changes. The ratio for industrial manufactured products has increased from 49. 7% in 1980 to 92. 06% in 2003; the high technical products increased from 4. 71% in 1980 to 25. 17% in 2003, showing a clear upgrading trend. Is FDI able to keep optimizing China's export structure? It is crucial to the relevant policy formulation and practice and will actively support the foreign policy too. It summarizes the experience of utilizing FDI over the past twenty years and also explores the future strategies. Especially after China's accession to the WTO, the foreign capital inflow to China will increase dramatically. To analyze the influence of FDI will show very important theoretical and realistic values.The first chapter briefly reviews the theories of Foreign Direct Investment (FDI), discussing the theoretical relation between FDI and China's export structure; Based on the theoretical analysis, the second chapter presents the development and current conditions of China's FDI and export trade structure, analyzes historical statistical data, and concludes that the inflow of FDI keeps improving China's export structure. However the current issues of China's exports structure are: (1) we export more manufactured products than elementary products; (2) the manufactured products are labor intensive with low competitiveness; (3) the proportion of capital or technology intensive products in the export commodities is lower than that of developed countries.Based on the improvement of the export commodity structure, the third...