The Empirical Analysis On The Trade Effects Of FDI In Beijing

Since the1980s, with the influx of foreign direct investment and the rapidincrease of foreign trade, Beijing is becoming the focus of the study of trade effectsof FDI. There were many exhaustive elaborations on FDI’s promotion action to thegrowth of economy in Beijing in the academic circle. About the effects of FDI to theforeign trade, many scholars also carried on the discussion and empirical analysisfrom the different angles in the last few years. These researches indicate thatinternational capital movement has the quite big promotion effects to the foreigntrade’s development of Beijing.The principal line of this paper is the main influence of FDI in Beijing to foreigntrade. By using qualitative and quantitative method, this paper systematically studiedthe effects of FDI to the foreign trade of Beijing. First of all, after combing the theoryof the scholars about the trade effects of FDI and making a brief review, the authordetermined suitable methodsfor empirical research and possible innovations of thispaper. Second, based on Beijing’s related statistical data, this paper described andanalysed the present development situation and the structure characteristics of FDIlike investment scale, investment way, investment source distribution and industrydistribution and the foreign trade like trade scale, industrial structure, trade way andmarket structure. Then, the empirical analysis on the trade effects of FDI in Beijingwas conducted. The trade scale and trade structure was studied by the co-integrationtest and the Granger causality and industrial competitiveness was studied by settingup an index evaluation system.The main conclusions as follows: FDI has strong relativity with gross increasingof Beijing’s foreign trade and trade creating effect reflects that relation; tradestructure improvement in Beijing attributed to the growing of FDI enterprises; FDIhas not changed the pattern of industry competitiveness of Beijing.On the one hand, itpromoted export competitiveness of Beijing, on the other hand, it restrained the exportcompetitiveness of domestic enterprises.At last, in view of the above questiones, this paper proposed the correspondingsuggestions. For instance, guiding foreign capital flows-to, improving the scale andthe quality of foreign capital, unceasingly optimizing investment environment, attracting service enterprises with high technology and high skills and improving theinternational competitiveness of domestic enterprises.