Analysis Of Foreign Direct Investment Effective Use Factor And International Trade Effect

The international trade and the international investment are an important channel of a country's international economy activities. The former is the flowing of commodity and service, the latter is the flowing of capital which is an important element of production. And the direct foreign investment is the main form of international investment. Along with speeding up of the world economics liberalization and integrated, the foreign direct investment (FDI) is playing a more and more vital role in the Chinese economy, becomes an extremely active constituent in our country economy. The relations between its effective use factor and international trade effect have become the main question which this article needs to study.First chapter of this article briefed the foreign direct investment effective use factor's present situation and the determining factor and the quantity computation basis. The foreign direct investment (FDI) the effective use factor refers to a proportion of the direct foreign investment, which can improved the host country's industrial structure, can make a promotion of technology advancement, and can also promote the economical benign development. This factor is directly reflecting the foreign direct investment's quality. This ratio mainly determined by the following index, the FDI overflow coefficient, the use factor of FDI in three easy childbirths industry which contains the manufacturing industry, in the natural resource profession and service industry, the storage quantity of attracted foreign capital. And the foreign capital region flows can also reflect this factor. Second chapter of this article analyzed the relations between the FDI effective use factor and the international trade effect. FDI effective use factor influences economical trade by two ways, the overflow effect and exterior effect. The overflow effect can promote international trade when the quality of direct foreign investment is at a higher situation. When the FDI effective use factor is higher, the overflow effect coefficient elevates, the technical transformation speeds up, the industry obtains the optimized promotion; The introduction foreign capital obtains a more reasonable disposition, avoiding the capitals'waste and leaving unused. It can form a stronger competitive advantage, forms the trade creation effect. In this time, the FDI storage quantity can also be increases. It can maintain a further development of the economy, while increasing competition potential. This kind of international trade effectiveness mainly creates by the import substitution exportation and imports brings-about effect. The former is the trade substitution effect, while the latter two is the trade creation effect. When it comes to another side of the coin, exterior effect can form a negative effect. It can hinder the international trade development, which happened when the direct foreign investment effective use factor was at low level. The trade on natural resource and the resources crowded product is popular since every country has different resources and produces-consumption level. This has a favor to the international division of labor deepening and the productive forces level enhancement. But under the unreasonable old international economy order, the international trade also can cause exterior effect the transnational shift, and further causes to the natural resource overdevelopment and the ecological environment destruction. This kind of exterior effect mainly occurs between the developed country and the developing nation, just as trade structure and waste trade. In this position, the developed country moves unitary the trade structure, the natural resource consumption huge industry toward the developing nation with the style of international trade, with the goals of seizing the profit. This can cause the international direct investment effective use factor drop great. Theoretically, the FDI effective use factor and the international trade exterior effect assumes the reverse change.Third chapter of this article separately analyzed FDI effective use factor and the economical trade relations between our country and other country. This question introduction by contrast method, take the Chinese FDI effective use condition as the foundation, make contrast research with the developed country and in the developing nation using the foreign capital model (US, India). We obtains the conclusion that our country FDI effective use factor is still maintain at a low level and lacks the endurance to the economical trade promotion. Although the investment effective use factor between the developed country and the developing nation is different, the tendency is positive. the direct foreign investment effectiveness enhancement is advantageous to a country's international trade. Chinese and American, China and India's foreign capital use comparison has also demonstrated China's insufficiency and the disparity in use foreign capital. Technical overflow benefit lower, the profession structure assignment is unreasonable. The foreign capital storage quantity comparatively is low. All above are the main reason why our country foreign capital effective use factor is still low.Fourth chapter of article has analyzed the relation between our country FDI effective use factor and economical trade effect in the aspect of industrial department and region. In industrial aspect, our country foreign capital mainly concentrates in the manufacturing industry and the natural resource industry, while service industry investment is few. The unreasonable investment structure has demonstrated our country FDI effective use factor present in murky situation. Various professions FDI effective use factor still had the very big difference. When it comes to the recent foreign capital flowed, the south of the coastal area accounted for the proportion in a big way, while the eastern part the interior area capital inflow relative was smaller. In the economical developed area, the FDI effective use factor is higher than other two kinds of areas by far, moreover coefficient significant is also relatively high, which explained that the developed area's FDI plays a vital role in growing the economical trade. The quality and the scale of FDI direct this change.Finally I forecast the FDI effective use factor future development situation, the Chinese absorption foreign merchant direct investment will have continued 2000 the steady growth situation, will obtain the FDI effective use factor will be the demonstration direct foreign investment quality major targets or quotas, will present with the national trade effect struggles the change. And proposed raises the FDI effective use factor the countermeasure. Try to attraction direct foreign investment with high quality, to guide the foreign capital investments to the technological innovation improvement direction. Encourage foreign capital expands to the primary industry investment. Try to improvement investment environment and infrastructure large-scale investment. While attracting foreign capital, our country must appear policy, detains the foreign capital, prevented the attraction the foreign capital is left unused or reflows in the international market. To guide foreign capital region flowing is another goal, encourages the mid-west infrastructure the project development. We should also enhance the foreign capital to the eastern part the technical impetus effect, the promotion industrial structure completes the adjustment as soon as possible.The direct supplementary relations between the direct investment effective use factor and the international trade quantity certainly do not appear, but actually has great advancement functions to the quality of FDI. The foreign direct investment effective use factor enhancement has advantages to improve our country's industrial structure, which effects are bigger than the labor-intensive form industry to the capital crowded industry function. This also has the obvious promoter action to the technology-intensive industrial development.So our country should pay more attention to the direct foreign investment effective use factor and the adjustment. Correctly guide the disperser to leave unused the low efficiency FDI, raises the FDI effective use factor and strengthens its trade creation effect and the overflow effect.