A Research On The Effects Of FDI On Export Trade In Hebei Province

With the rapid development of globalization, the relation between international trade and Foreign Direct Investment (FDI) is interconnected than ever before. It shows that foreign direct investment plays an increasingly important role in our economy and already has become an indispensable part in our economic system nowadays, especially to the export of our country. Therefore, is there any relationship between the entry of FDI and the optimization of our country’s export goods structure? Does FDI contribute to the he optimization of the export goods structure? It is crucial to the relevant policy formulation and practice and will actively support our foreign investment policy too. Simultaneously, it summarizes the experience of utilizing FDI over the past twenty years and also it is the exploration of how to make use of foreign investment policy in the future. There exist many problems in attracting and utilizing foreign investment. Consequently, our country should attach importance to the problem of how to attract FDI to boost the healthy, steady and consistent development of our foreign trade structure as well as solving it.This paper is based on the present research topic in the development status of foreign direct investment and export trade of Hebei province. Based on the existing research of foreign direct investment and trade relation theory, the author investigates the effects of FDI on export trade in Hebei Province from the total export trade and export trade structure. In the past years, foreign direct investment has made positive contribution to the foreign trade structure optimization, especially in export trade structure, which not only promotes the development of Hebei’industrialization process, but also promotes the high-tech industries and of high machining industry.Faced the international and domestic new economic environment, having an insight into and grasping the new situation of the foreign investments in China is the important premise of using the foreign investment well further in the new period. For the characteristics of foreign trade and the foreign direct investment of Hebei province, we should take necessary measures to reduce the main factors of restricting Hebei province and use foreign capital to improve the structure of foreign trade further, promote the optimization of the industrial structure and avoid the negative effect foreign trade structure in the maximum. This paper is based on the statistical data of Hebei province in recent years, making an empirical research on the relationship between FDI and export trade growth, trade structure optimization by the econometric statistical knowledge so that we find out the insufficiency of the foreign trade and the foreign policy and we can make trade policy, foreign policy and industrial policy more supporting and so it promotes the economic development of Hebei province through the dual role of the export trade and foreign direct investment. Finally, we can take effective countermeasures to optimize the export trade structure.