Research On Foreign Direct Investment And The Promotion Of Export Competitiveness Of Jiangsu Province

The fast increase of foreign-oriented business and International Investment is the chief characteristic of the world economy globalization. With the world economy globalization has strengthened further, the Foreign Direct Investment (FDI) accounts for the majority that is playing an important role and influencing more to China's domestic economy. The theoretical field has made detailed study on the motivation that FDI made to our domestic economy. In recent years, some scholars had studied the relative connection of FDI and Export Commerce. Despite of the different points, the basic conclusion is that FDI can promote China's foreign-oriented business increment. As a strong province of China in foreign-oriented business, Jiangsu province is the vanguard when China marches into the international market. Jiangsu's export competitiveness directly reflects China's competitiveness on the international market. As a result, it is essential to research how to promote Jiangsu's export competitiveness by using FDI in order to more scientifically join the international division of labor.The thesis takes the Jiangsu province as the target, which is the hot area of absorbing foreign investment. The paper mainly discusses the relationship between FDI and the promotion of Jiangsu's Export Competitiveness, with the combination of theoretical analysis and empirical methodology. Firstly, based on FDI theories and International Trade theories about competitiveness, we deduce the several factors influencing the source of Export Competitiveness, and explain the approaches of FDI promoting Export Competitiveness. Secondly, the paper analyzes the current situation of FDI and exports in Jiangsu, also estimates Jiangsu's Export Competitiveness, and then summarizes the influence that FDI effect on Jiangsu's Export Competitiveness by combining relative theories. Thirdly, the paper put the Jiangsu's data in the past several years into the empirical analysis on the relationship between FDI and the promotion of Jiangsu's Export Competitiveness, and analyzes the effect that FDI may have on the increase of Jiangsu's total export volume, the raising of the percentage that Jiangsu occupies in international export market, the promotion of export structure, and the improvement of the technology level of Jiangsu's export commodities. It puts forward that inducing FDI is the key way to improve Jiangsu's Export Competitiveness. Finally, the thesis analyzes the trends of FDI in Jiangsu and the problems exiting in inducing FDI to promote Jiangsu's Export Competitiveness, based on above analysis, we put forward the suggestion and opinions on improving Jiangsu's Export Competitiveness by applying FDI more effectively.