Foreign Direct Investment Impact Studies, Hunan Province's Export Competitiveness

The development of economic globalization enhances the flow of all elements around the world. With the world economy globalization further strengthening of, the Foreign Direct Investment (FDI) accounts for the majority that is playing an important role and influencing more to China's domestic economy. Theory and model about FDI and export has explicitly proposed that FDI has the substitution effect and the creation effect to the exportation, FDI and exportation grow at the same time. In recent years, some scholars had studied the relative connection of FDI and Export Competitiveness. Despite of the different points, the basic conclusion is that FDI can improve China's export competitiveness. More than 20 years later, FDI enterprises have become a important increasing source of trade and economic in Hunan. As a result, it is essential to research how to promote Hunan's export competitiveness by using FDI in order to join the international division of labor more scientifically.So it's necessary to discuss the relationship between FDI and the promotion of export competitiveness in Hunan by theoretical analysis and empirical methodology. Firstly, this thesis analyzes the relationship between FDI and export competitiveness by theoretical. Secondly, it analyzes the situation of FDI and export competitiveness in Hunan. Then, an index system based the relationship between Hunan FDI and export competitiveness is established. Thirdly, based on the data of past 15 years ,it analyzes the relationship between FDI and the promotion of export competitiveness in Hunan, and analyzes the export engine effect, technical progress effect, structure upgrading effect and competition catalysis effect. Lastly, the thesis analyzes the problems existing in capitalizing on FDI to promote export competitiveness and gives some suggestions. The conclusion is the promotion of FDI to export competitiveness is not very well. The thesis made suggestions from attract and use FDI. It is not only to make up the lack of research in the relationship between FDI and export competitiveness, but also to provide a framework for analysis for other provinces.