The Impact Of FDI And International Trade On China’s Regional Economic Growth

FDI and import and export trade are important reasons for the economic development of a country, but China’s regional structure is complex, leading to the development of FDI, import and export trade have obvious regional differences. Based on panel data of 30 provinces (municipalities and autonomous regions) from 1995 to 2013, this paper empirically studies the impact of FDI, import and export trade on economic growth in the country and the three regions. The results show that:FDI, import and export trade have obvious different impacts on national and regional economic growth. From the point of the view that take the country as a whole, the effects of FDI, import and export trade on economic growth are very significant. The import and export trade play a significant positive role in promoting economic growth, while FDI plays a negative role; The situation of eastern region is like the whole country’s; The effect that import trade have on the economic growth is not significant in central region; FDI, import and export trade have no significant effect on economic growth in the western region. The main reason for the negative impact of FDI on economic growth is the "crowding out effect" of FDI to domestic capital, and the bigger the market potential is, the more intense the crowding out effect is. The central region actively undertakes the transfer of industries and technology in the East, so that the export trade has a rapid development and become the main driving force for economic growth. As the export structure of commodities is not reasonable, FDI mainly flows into the low-end manufacturing and resource industries, so that the impact of FDI, import and export trade on economic growth in the western region are not significant.According to the different influences of FDI, international trade on the eastern, central and western regional economic growth, different policy suggestions are put forward to the eastern, central and western areas based on labor, capital, technology and other basic elements. First of all, the eastern region should encourage enterprises to carry out independent research and development, improve the ability of independent innovation of enterprises; Make full use of the favorable geographical position, good industrial base and other advantages in order to further expand the opening to the outside world; it should positively transform the mode of foreign trade, optimize the structure of import and export commodities, improve the technology content of the product. The eastern region should pay more attention to the positive and effective use of domestic funds, gradually reduce the dependence on foreign capital. Secondly, for the central region, it should give full play to the comparative advantages, vigorously develop characteristic agriculture, green agriculture and mineral products for foreign trade; actively introduce foreign advanced production technology, equipment and management experience in order to construct a good "soft environment" and "hard environment"; Advance science, technology and education, pay more attention to the human capital accumulation; Central region should establish the overall concept, strengthen cooperation with the eastern region and western region to achieve area complement. Thirdly, for the western region, it should strengthen infrastructure construction to create conditions for the industry transfer of eastern region and the central region; Improve the investment and financing environment in order to attract more foreign capital to participate in the development of the western region; Strengthening the development and introduction of elite in the west and improve the qualities of the labor force; Make full use of the advantages of characteristic resources, vigorously develop the characteristic industry and promote the export of characteristic product.