A Study On The Effect Of Outward Foreign Investment On Import And Export Trade In China

Since the report at the16thParty Congress has noted that the economic developmentmust insist "going out " strategy, Outward Foreign Domesticate Investment(OFDI) fromour Chinese enterprises gets a huge development. The literature review in this thesis goesfrom the demonstration research on OFDI to the empirical analysis on the relationshipbetween OFDI and Import and Export Trade. But the amount of the research linkingbetween Chinese outward foreign direct investment and import and export trade isrelatively small, and it is of great significance for the globalization on Chinese economicdevelopment the study on the effect of OFDI on Import and Export Trade in China andthe recommendations for improving the import and export trade by OFDI.Based both on the quantitative and qualitative analysis methods, this thesis primarilyworks on the system how OFDI in China motivates the Import and Export Trade. Theimpact degree on the effect of OFDI on Import and Export Trade in China can be madeby Least-squares method, using the data from OFDI and import and export trade. Theresult of this analysis is that the OFDI will give positive influences on the mount of theimport and export trade. Particularly in the long run, this positive motivation will beabsolutely obvious. The result reveals that the substitution effect of OFDI on Import andExport Trade in China is a little stronger than the complementary effect. The increaseddegree on Export Trade caused by the OFDI is bigger than on Import Trade. In the end,this thesis gives some practical recommendations through the results of the empiricalanalysis.