An Empirical Study Of Foreign Direct Investment Promoting Export Competitiveness Of Jiangsu IT Industry

Since the middle 1980s, Jiangsu Information Technology Industry (IT Industry) has successfully attracted Foreign Direct Investment (FDI) and the exports of Jiangsu IT Industry have risen rapidly. Jiangsu IT Industry export competitiveness has improved obviously in the time. The two phenomena almost happened in the same time, and was there any relation between them? The object of this analysis is just to verify the effect of FDI in enhancing Jiangsu IT Industry export competitiveness by theoretic and empirical study. By the actual analysis of Jiangsu IT Industry export competitiveness we find that Jiangsu IT Industry export competitiveness has improved gradually, Jiangsu export product structures have evolved from residual-intensive product to knowledge and capital intensive product and the competitive advantage will be more vital to the Jiangsu industry development even through the comparative advantage still is important .By analyzing Jiangsu IT Industry utilization of inward FDI we find that the inward FDI is growing up but the growth rate is lower than the whole country, which causes the proportion of the percent of accumulation of Jiangsu inward FDI to the whole country is lower than before .And the migration of IT industry capital which the core is FDI switching has resulted in IT industrial centralization. In this article, the patulous RCA (Revealed Comparative Advantage Index) and econometrics are applied to testify the export role of inward FDI in Jiangsu IT Industry. The result revealed that inward FDI has contributed a lot to the growth of Jiangsu IT Industry exports. Based on the above-conclusion, policy's suggestions on utilizing FDI to enhance export competitiveness were made and adjusted.