| Under the background of economic globalization, as two of the most fundamental ways to participate in the international economy division of labor, Foreign Direct Investment and International Trade associated with each other promote each other, and together have a driving role in the economic growth of home country. This provides a realistic basis for the integration of the theories while it also challenges the traditional theory. This paper focuses on this issue--if China's OFDI and international trade will affect its economic growth; And how? Was there a relation among the three factors? What kind of international trade policy should be insisted in order to ensure China's foreign trade and economic sustainable development? After a general description of Chinese OFDI concerned with its features and problems, this paper then presents the theories of international trade, the theories of international investment, the theories of economic growth and also the blending or integration of these theories. Afterwards, in the view of sustainable development, a general commentary on the "Foreign direct investment on trade and economic growth impact "of the study are reviewed and commented And kinds of research home and abroad about the relationship between international trade and resource and environment are reviewed. Then an analysis frame of the relationship among OFDI and international trade and economic growth is established on the basis of the amendment of Kojima Model. And the outcome of theoretic analysis is that–there was a relation among the three factors. Foreign direct investment and foreign trade can be promoted by co-existence and complement, and then the two have an effect on the promotion of economic growth. In turn, the raising level of the home country's economy will also promote its foreign direct investment. Subsequently, this paper take an empirical analysis including Co integration Test, Granger Test and Correlation Test testifies, to fortunately find out that results of the empirical tests are accordant with the conclusions of the theoretical analysis. According to the analysis outcome, the suggestions about how to keep China's"Going out"policy are proposed after a review of China's trade policy. At the last, in the view of sustainable development, this paper gives a commentary on the free trade, and the responsibility of government and producers. |
