A study on the effects of inward FDI has on export in China

FDI exerts an ever-increasing influence on the export trade of China, which attracts the largest amount of FDI in the world. This thesis studies the multiplier effect and performance contribution that FDI has on the export of China through theoretical analysis and empirical analysis about the FDI's effect on export trade, and also briefly analyzes the effect China's direct investment to the other countries has on the export. Survey shows that FDI plays a positive role in expanding the scale and optimizing the structure of export trade in China. Apart from the apparent trade creation effect and export structure improvement effect, FDI also brings about certain trade substitution effect and indirect trade effect. But the effect of China's indirect investment is not so obvious. On the other hand, there exist some substantial problems in China's utilizing FDI to promote export trade. We should, therefore, develop orderly market environment and improve the related ability of domestic enterprises constantly when strengthening the effective guidance for the FDI.