Research Into The Influence Of Agricultural FDI On Agricultural Export In China

Against the background of reform and opening-up as well as an ever-increasing economy, both China’s foreign direct investment (FDI) and export trade are on the rise. But after an investigation into the employment of FDI in agriculture, it is found that its scale is significantly backward and its regional distribution is severely uneven. Relevant economic theory indicates that FDI will influence export trade of the target country. Then questions are proposed:on the basis of China’s actual conditions, will agricultural FDI promote agricultural export? And how will agricultural FDI influence agricultural export in different economic regions? In the term of issues concerning agriculture, rural residents and rural areas, this paper quantitatively researches into the influence of agricultural FDI on agricultural export, and it contributes to China’s agricultural export, improvement of agricultural development and balanced economic development among different regions.Beginning with the relation between FDI and international trade, this paper discusses in detail the effect of FDI on export trade and makes a theoretical study of the influence of agricultural FDI on agricultural export, and the other factors of influencing agricultural export. After depicting the overall scale of agricultural FDI and its discrepancy between the eastern and western region, it makes a qualitative study of the basic characteristics of agricultural FDI and agricultural export. Finally, this paper, taking the agricultural FDI, GDP, indices of producer’s prices for farm products and agricultural export of15provinces in China as samples, taking2001-2007as time window, establishes the panel-data model of the whole region, the eastern and mid-western region, and makes a quantitative research into the whole effect and regional differences of agricultural FDI on agricultural export.This paper combines normative analysis with empirical analysis and arrives at two conclusions:One is that China’s agricultural FDI promotes agricultural export. Both the agricultural FDI and its two lagging periods can promote agricultural export, and the influence of the two lagging periods is less than that of the current period, which indicates that the agricultural FDI exerts its influence more in a direct way, that is, the export of foreign-owned enterprises directly adds to the export amount. And the indirect way, namely the ability of promoting agricultural export by means of spillover effect, needs further improvement. The other is that the influence of agricultural FDI and its two lagging periods on agricultural export varies in degree depending on the region. In the developed eastern region, agricultural FDI and its two lagging periods have a great promoting effect on agricultural export, and the elastic coefficient of the two lagging period is greater than that of the current period, which indicates that in China’s eastern region, the spillover effect is well employed, and the competition of domestic enterprises is enhanced in an indirect way, which is a more healthy approach to promoting export. In the mid-western region, despite its small scale, agricultural FDI still has a great influence on agricultural export. Different from eastern region, the influence of the two lagging periods in the mid-western region is much less than that of the current period, which is mainly owning to the limitation of its economic development and local resources. What is more, the small scale of agricultural FDI prevents the full use of its spillover effect so as to limit the long-term influence of FDI on export.