Research On The Effect Of China's Direct Investment In The New ASEAN Nations

Nearly 30 years after the establishment of ASEAN,Cambodia,Myanmar,Laos and Vietnam joined the four countries.The New Fourth States are all located in the junction of the Southeast Asian economic circle and the South Asian economic circle and are characterized by gradual opening up of economic policies,abundant natural resources and cheap labor.Among them,Vietnam,Laos and Myanmar border China with many border crossings and ports of commerce and have unique geographical and cultural origins advantages in trade development.In 2016,the ASEAN New Fourth States(CLMV)received more and more attention from investors.With the acceleration of the construction of China-ASEAN Free Trade Area and the promotion of cooperation in the Greater Mekong Subregion,China has enjoyed frequent exchanges with the New Fourth States.With rapid economic cooperation,the new four countries have enjoyed increasing status in China's foreign direct investment.Through the empirical analysis of China's direct investment between New Fourth States and the bilateral trade,it is concluded that China's direct investment in the New Fourth State can significantly promote the import and export between China and the New Fourth,especially the expansion of China's Export trade.Direct investment increased by 1% and exports increased by 0.6350%.Compared with the past six countries,the under-developed economy of the four countries has higher export and import creation effects than those of the past six countries,and put forward some targeted policy suggestions on this basis.