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

As a good means to promote the effective allocation of resources,international direct investment has achieved unprecedented development in world economic exchanges.The geographical proximity of ASEAN countries to China and the huge potential for economic development make ASEAN countries important international partners that China is striving to maintain and an important destination for Chinese enterprises to “go global”.The bilateral trade volume between China and ASEAN has grown steadily,and China's direct investment in ASEAN has been increasing.Studying the trade effect of China's direct investment in ASEAN is of great significance for actively deepening economic and trade cooperation with ASEAN.Based on the relevant theories of direct investment and trade relations,the internal mechanism of the interaction between direct investment and international trade is elaborated.This paper also gives an overview of the scale of bilateral trade between China and ASEAN and China's direct investment in ASEAN.The article uses gravity model to empirically study the trade effect of China's direct investment in ASEAN.According to the empirical research results,China's direct investment in ASEAN has a greater role in promoting export trade,and its impact on import trade is not obvious.The effect of the stock of direct investment is obviously better than the flow of direct investment.The higher the level of economic development of ASEAN countries is,the more obvious the effect of direct investment will show in export trade.The direct investment also has different export trade promotion effects for different industries.According to the analysis conclusion,the author put forward relevant policy recommendations.The government should strengthen policy support for direct investment and create a good internal and external environment for domestic enterprises to “go global”.It is necessary to strengthen investment guidance for enterprises and help enterprises choose the right investment direction.For enterprises,they must fully recognize the characteristics and differences of ASEAN countries,conducting in-depth investigation,analyzing ASEAN countries from the perspectives of both the states and the industries,and select investment locations that are beneficial to the self-development of the enterprises to maximize investment benefits.