Abstract

With the development of the world economy, in order to solve the fierce market competition between countries, one of the effective means for Chinese enterprises is foreign direct investment. The Chinese government requires continuous deepening of reforms, so there are more and more foreign direct investments by Chinese companies. In view of this situation, this paper focuses on the research of the export effect theory of Chinese enterprises’ foreign direct investment. At the level of empirical testing, this paper separately analyzes China’s total export trade as explained variables, foreign direct investment as explanatory variables, GDP as the control variable, establishes a relevant model to study the direct foreign investment of Chinese enterprises to China’s exports. After testing the model, the trade effect is further analyzed. This thesis focuses on the theory of export effects, and in theoretical community will further improve the research on the foreign direct investment about Chinese enterprises, and put forward suggestions that can provide you with reference for related work.

Highlights

  • Effective foreign direct investment and improvement of foreign trade are important forms and means for governments and enterprises to develop the economy and actively participate in economic globalization

  • This paper holds that the operation of enterprises is a process of constant pursuit of high profits low-cost, frequently blocked, Chinese enterprises in foreign trade practice are treading on thin ice in the export market, in response to the buyers to negotiate with their rivals on price, Chinese enterprises foreign direct investment seems to be the effective means to solve this problem

  • If the β1 result is positive, it means that the export effect of Chinese enterprises' OFDI is positive, and Chinese enterprises' OFDI will play a positive role in promoting China's exports; otherwise, it indicates that Chinese enterprises' OFDI has substitution effect with China's exports

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Summary

Introduction

Effective foreign direct investment and improvement of foreign trade are important forms and means for governments and enterprises to develop the economy and actively participate in economic globalization. This paper holds that the operation of enterprises is a process of constant pursuit of high profits low-cost, frequently blocked, Chinese enterprises in foreign trade practice are treading on thin ice in the export market, in response to the buyers to negotiate with their rivals on price, Chinese enterprises foreign direct investment seems to be the effective means to solve this problem. Under the guidance and support of the "go global" policy of the Chinese government and supported by the strong economic strength, Chinese enterprises have made unimaginable progress in their OFDI. The export effects of the growing OFDI of Chinese enterprises have become the focus of scholars and the government

Review of Domestic Research
Review of Foreign Research
Models
Variable Selection
Cointegration Test
Stationarity Test
Conclusion
Granger Causality Test
The Model Results
Full Text
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