Empirical Study Of The Relationship Between Foreign Direct Investment And China’s Trade In Goods

In recent decades, international trade and investment has become the most important economic activities, especially in the process of economic globalization, foreign trade and international investment has been rapid development. Since China’s reform and opening up is being put into practice during this critical period, making China’s economy has been developing quickly; especially the development of China’s foreign trade has become an important engine of China’s economic development. With the development of China’s foreign trade, China’s foreign direct investment has gradually emerging as another important driving force for economic development. And in today’s complicated world situation, the situation of the global economy will continue the trend of slow growth, China’s foreign trade is also confronted with various obstacles; Therefore, the study of the relationship between of China’s foreign direct investment and foreign trade is great significance to China’s economic development. Based on this background, this paper impress on theoretical analysis and empirical research, qualitative analysis and quantitative analysis methods to analyze the relationship between China’s foreign direct investment and foreign trade and use the comparative method to analyze the impact of foreign direct investment between imports and exports.This paper is divided into six chapters, and it can be divided into two parts:The first part is the basis of the article, and it is the first three chapters of the article. The first chapter introduces the research background, purpose and meaning of this article, summarizes and reviews foreign direct investment and foreign trade-related theoretical literature, and describes the article ideas and method overall and construct the framework of this article. The second chapter systematically analyses the history、 the status of the development of China’s foreign direct investment and foreign trade in goods. And this chapter pertinently points out obstacles to foreign direct investment at present and China’s foreign trade development process facing obstacles in the post-crisis era, so as to orient the empirical part of the article. The third chapter analyzes the impact of foreign direct investment of foreign trade in goods from the theoretical point of view. First, this chapter starts from the motivation of investment analysis from five point to explain why China’s foreign direct investment exist and to develop, and then bases on the motivation of foreign investment from trade and investment alternative theories, marginal industrial transfer theory to explain the principles of the impact of foreign direct investment and foreign trade in goods.The second part is the key part of the paper and the empirical research and the conclusions of the article. The fourth chapter is the core elements of this article. With the basis theoretical, in order to quantify the relationship of foreign direct investment and foreign trade in goods, this chapter use empirical analysis to explain the relationship between foreign direct investment and import and export scale and structure using a variety of data, and explain the situation based on the results of the regression. Based on the previous chapter, the fifth chapter analyses the intrinsic relationship of China’s foreign direct investment and foreign trade in goods and makes conclusions. Overall, China’s foreign direct investment has a positive impact on the size of the import and export of China’s trade, and has optimization effect on the commodity structure and regional structure. Based on issues raised earlier in this chapter and combined with the conclusions of this chapter, the second part of this chapter put forward policy and recommendations on how to improve the current situation of China’s foreign direct investment and foreign trade so as to achieve sustainable development. Research on foreign direct investment and foreign trade relations is a very complex issue; however this paper make a comprehensive analysis of the relationship between the two based on the current China’s situation. Finally, the sixth chapter analyses what we work in this paper and points out that we are facing the difficulties in the current study. And the relationship between foreign direct investment and foreign trade is not a fixed relationship, but rather a dynamic relationship, and that leads to the study contents ofthe article has some limitations.