Research on the Relation between OFDI and Export Trade of China

Abstract

Under the promotion of One Belt And One Road strategy, the development of China's foreign direct investment is positive and stable. However, China's export trade is faced with great challenges due to the complicated foreign trade environment such as sino-us trade friction now. Can development of China's OFDI facilitate to break through the development dilemma of China's export trade? Based on the data of 2017 to 2002 of OFDI and export trade, granger causality analysis is carried out between OFDI and export trade in China, demonstrating that China's export trade has a promoting effect on OFDI, meanwhile OFDI cannot promote the development of export trade. Therefore our country is supposed to transfer export trade flows, enabling the export trade to further expand the OFDI. In addition, some measures can be taken to vigorously promote the development of export trade, such as improving enterprise productivity by independent innovation and establishing enterprise export risk aversion mechanism.