The Research Of OFDI And Trade Level

Since 2012,international trade has been in a continuous downturn,and how to sustain growth in global trade development has become a hot topic.As international capital flows of Outward Foreign Direct Investment,in the increasing at the same time,due to the different economies between the global value chain division status is not balanced,the trade relationship between the asymmetry,future direct investment and complex challenges,the countries have to face such problems,is the foreign direct investment really beneficial to the improvement of the domestic trade level?And the division of labor in the global value chain?It is becoming mainstream to analyze trade issues with added value instead of export value.Compared with Outward Foreign Direct Investment,the value of export trade and trade in value added effect can reflect the real trade level of a country.This paper studies the internal theoretical mechanism between OFDI and export trade,trade in value added and the rate of trade in value added.The paper combines OECD-WTO TiVA database 60 countries in 1995,2000,2005,2008,2009,2010 and 2011 international level panel data,uses empirical analysis method to study the influence between OFDI and export trade,and basing on the two kinds OFDI of developed economy and developing economy,study the influence between OFDI and trade in value added,the rate of trade in value added.The empirical results show that the traditional export value overestimates the trade effect of foreign direct investment relative to export value added index.Outward Foreign Direct Investment has a significant positive impact on the improvement of export trade,and also has a significant positive correlation with the trade in value added,as well as the positive impact on the value-added rate of trade.Other variables such as FDI,labor force,exchange rate and R&D are related to the improvement of trade level.Distinguish between developing economies and the return of the developed economies,according to the results of both developing economy and developed economies,foreign direct investment had a positive effect on the promotion of trade.