Analysis Of Trade Effect Of Chinese Direct Investment In Brazil

For over30years since reform and opening up, China’s economy has beengrowing in a highly development, greatly improved the economic power andcomprehensive national strength of our country. China’s outward foreign directinvestment has been more open, it is combined with the introduction to and a strategyof going out. The rapid increase of foreign investment, will make China’s economyhas maintained rapid growth, and from this perspective, the development of foreigninvestment is very meaningful. Brazil and China is the two largest countries indeveloping countries, and are both members of the "brics countries"; As is known toall, our country belongs to developing countries, therefore, when choosing foreigninvestment in the host country，our country should give priority to those whoseeconomic development level is similar to our country or slightly lower than thedeveloping countries, among them, Brazil is the biggest area, the most populous andeconomically developed countries in Latin America, so the direct investment in Brazilcan’t be ignored. Moreover, China’s direct investment in Brazil can help to enhanceChinese overall image in Latin America, enhance China’s influence in Latin America,and further promote China’s economic and trade cooperation with other countries ofLatin America.From the perspective of the abundance of production elements and thedepartment structure of the national economy, there is great complementarity betweenChina and Brazil, China-Brazil trade and China’s direct investment in Brazil havesome development space. Although the scale of China’s direct investment in Brazil issmaller, but development is very fast. In recent years，China’s direct investment inBrazil has maintained rapid growth, and investment field is becoming more and morewide, the original main areas of investment focus on resources and energy, is nowgradually extended to other industries. At the same time, the trade between China andBrazil also got rapid development. In terms of theory, foreign direct investment willimpact on bilateral trade, and produce a certain effect of trade.At first, this paper is to sort out the relevant theories about trade and investmentrelationship. And the China’s direct investment in Brazil and the development of trade between China and Brazil was carried out in detail to clarify, And from the empiricalpoint of view to analyze the trade effect resulted from China’s direct investment inBrazil, and a basic conclusion: there is a complementary relationship between China’sdirect investment in Brazil and China-Brazil trade, that is to say, China’s directinvestment in Brazil has promoting effect on bilateral trade. Secondly, the paperchoose the interpretation of the variable is the China’s non-financial direct investmentin Brazil, choose Chinese calendar year for Brazilian exports of primary products,calendar year China to Brazil’s exports of manufactured goods, all China imports ofprimary products in Brazil and China to Brazil imports of manufactured goods,primary products intra-industry trade index, the index of intra-industry trade ofmanufactured goods to be explained variable. Finally, according to the result ofempirical test, from the macro and micro two aspects put forward reasonablesuggestions.