Inward FDI Influences Posed on Chinese Exports

Abstract

Simply viewing FDI and trade as either alternatives or complementary modes of internationalisation can be biased. Therefore, this paper aims at answering the question of how inward FDI influences a country’s trade. The case of Singapore shows inward FDI facilitate trade and economic development subject to specific contexts. During the miracle economic development process of China, what kind of roles that the inward FDI has played has to be answered. This work statistically examined the data between China and OECD countries from 1988 to 2012, and proved that there is a complementary relationship between inward FDI and exports of China.