Analysis Of The Impact Of OFDI On Export In Zhejiang Province

This paper aims to analyze the impact of OFDI on export in Zhejiang Province through a combination of theoretical and empirical research method.The result of the empirical model shows OFDI flows will expand the export and OFDI stock will substitute the export.In this paper,the empirical result shows that in the short term,longitudinal multinational companies,mergers and acquisitions,and business service OFDI promote the export of Zhejiang Province.In the long term,in order to avoid trade friction and reduce trade costs,companies are more inclined to horizontal OFDI;companies transfer the marginal industries without forming new comparative advantage;the international company's headquarters do not develop the core services in Zhejiang,these all shrink the export.After the theoretical and empirical research,here propose some recommendations.Firstly,it is necessary to provide preferential policies for private companies.Secondly,focus on research and innovation.Thirdly,focus on building the back platform,not only guide enterprises to "go out" but also "take back".Finally,encourage the OFDI of business services.