Impact Of FDI On China's Trade Structure: Theoretical Study And Empirical Analysis

With the rapid development of globalization, the relation between international trade and Foreign Direct Investment (FDI) is interconnected than ever before. As for the relation between international trade and foreign direct investment, studies seldom focus on trade structure. In fact, foreign capital not only becomes the major factor that influences the host country's trade growth, but influences trade structure, export competitiveness as well. Concretely speaking, what is the relation between China's foreign trade and FDI under the condition of economic globalization? What are the influences FDI has on our trade structure? This thesis analyzes the questions mentioned above theoretically and empirically, which is practically significant to the issues including further opening-up, FDI enticement, and proper policy formulation.Theoretical study of this thesis divides capital, labour and technique into high and low ,outside and inside categories, constructs a model of"2*2*3"to analyze capital formation in FDI, the mechanism that technology spillover effect, which affect the factor promotion structure and trade structure. In the empirical analysis, this thesis uses methods on two levels: FDI brings trade effect to China, and produces certain positive impact on the optimization and upgrading of trade structure to our country. But china's international Division of Labour has little change, as a result of FDI.