| The current gradual expansion of the world economy, China’s foreign trade realized rapidgrowth, further optimization of structure. The sustained growth in trade surplus and foreignexchange reserves are big problems for China’s economy. FDI is the key point in China’strade surplus, so what do we need to solve is how we could use FDI more efficiently andreasonably. This is a hot spot that need to study. There’re serious regional differences in China,so there may be huge uneven in the distribution of FDI and trade. To study the differentcontribution of FDI on trade in these regions, we can’t stand in the national level, or we’ll notfind the correct relationship between FDI and trade. As a result, we should study theinequality to give the reasonable policy recommendations.In theory, this paper defines the related concept firstly, and then introduces therepresentative theory of foreign direct investment and international trade, and overview ofdomestic and international study about FDI and foreign trade relationship. And then using the1987-2009economic data, based on the macroscopic angle to analysis our country foreigntrade status and use FDI situation, through the simple descriptive statistical analysis, we gotthe conclusion of FDI on China’s trade with creative effect. Finally, according to theconclusions put forward some suggestions.The author uses panel data model to empirical analysis the relationship between FDI andthe three regions foreign trade in our country, Main findings in this paper:（1）Between1987to2001, FDI in the eastern region showed its notable creative-effect to export and import;between2002to2009, FDI in the eastern region had no significant influence on export andimport.（2）Between1987to1992, the empirical analysis result showed that there’s nonotable link between FDI and trade in central region; between1993to2001, FDI in thisregion showed its notable creative-effect to import; between2002to2009, FDI in this regionshowed its notable substitution-effect to export.（3）The empirical analysis result showed thatthere’s not any notable link between FDI and trade in western region between1987to1992;between2002to2009, FDI in this region showed its notable creative-effect to export andimport. According to the conclusion of this study, the author suggests that: In order to promotebalanced development of regional foreign trade, we should guide the FDI flow into centraland western regions, and provide corresponding policy support; at the same time, lead the FDIin eastern region flow into high-tech industry and make the trade-oriented FDI transform intomarket-oriented type. |
