Substitution Or Promotion Of OFDI In Trade

In the study of contemporary international economic theory,the relationship between OFDI and trade has always been a hot topic.Research at home and abroad tends to analyze the relationship among different countries.However,the trade effect caused by OFDI is unique because of the difference of investment motivation in various industries.Therefore,there is still room for further exploration between the existing research conclusions and the actual trade effect.Thus,aiming at the above problems,this paper studies the influence of OFDI in different industries on Chinese export trade from the perspective of middle level industry.In this paper,we used linear regression model to empirically analyze the influence of OFDI on export trade by selecting the export trade data of China to ASEAN from 2006 to 2016.Then we further analyzed the differences in the impact of OFDI on export trade before and after the establishment of China-ASEAN FTA.Lastly,influence of the investment scale on the export scale of the main industries involved in the investment in ASEAN.Three findings can be concluded as below: Firstly,the direct investment has a significant promoting effect on export trade,and the effect will become more obvious with the increase of the lag period.Secondly,the promotion effect of OFDI on export trade increased firstly and then decreased since the establishment of China-ASEAN FTA.Thirdly,in different period,the effect of OFDI in various industries on the export trade of this industry are unique.In addition,the impact is complex,which needs specific industry analysis.The research in this paper expands and deepens the realistic basis of existing research theories of outward foreign direct investment and trade relations.