Author(s)

Huizhi Li ^1,2, Xianghua Yu ^3,4

Affiliation(s)

¹ Hunan University of Science and Engineering, Yongzhou, Hunan, 425199, China
² Center for Internatoinal Education, Philippine Christian University, Manila, 1004, Philippines
³ College of Chemistry & Bio-Engineering, Hunan University of Science and Engineering, Yongzhou, Hunan, 425199, China
⁴ Hunan Provincial Engineering Research Center for Ginkgo Biloba, Yongzhou, Hunan, 425199, China

Corresponding Author

Xianghua Yu

ABSTRACT

Since the reform and opening up, our country foreign direct investment and export trade have increased rapidly, which has promoted the economic development effectively. But Hunan compared with other provinces in China, export-oriented economic development is relatively backward. This paper selects Hunan Province as the research object, starts from the relationship between export trade and foreign direct investment, analyzes the current situation of export trade and FDI in Hunan province, and makes an empirical analysis of the relationship between export trade and FDI in Hunan Province, verifying the existence of a positive correlation between export trade and FDI. It can be seen from the results of stationarity test and co-integration test that, FDI in Hunan Province promotes the growth of export trade, but this influence has lag effect. Hunan Province should strengthen the introduction of foreign capital in order to drive export trade and promote the sustainable and healthy development of export-oriented economy. Finally, this paper puts forward some reasonable countermeasures and suggestions for the coordinated development of Hunan's export trade and FDI.

KEYWORDS

Export Trade, FDI, Co-integration Test, Countermeasure Suggestions

CITE THIS PAPER

Huizhi Li, Xianghua Yu, Research on the Influence of FDI on Hunan Economy. Financial Engineering and Risk Management (2023) Vol. 6: 60-72. DOI: http://dx.doi.org/10.23977/ferm.2023.060508.

REFERENCES

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[2] Zhu Lin. The Dynamic Relationship between China's International Direct Investment and International Trade. Journal of Central University of Finance and Economics, 2015, (01): 88-92.
[3] Zhou You. Discussion on the Competitive Advantages of Developing an Outward-oriented Economy in Hunan Province. Cooperation in Economy and Technology, 2015, (09): 27-28.
[4] Hu Hengsong, Li Rongjian. Research on the Relationship between Foreign Direct Investment and Import and Export Trade in China—Empirical Analysis Based on State Space Model. International Economic Cooperation, 2016, (07): 59-66.
[5] Chen Yinfei and Wu Miaomiao. Research on Investment and Trade Relationships from the Perspective of Social Network. China Business, 2014, (16): 190-192.
[6] He Wei. Research on the Impact of Capital Flows and Export Trade on China's Foreign Exchange Reserves - An Empirical Study Based on VAR Model. Price Theory and Practice, 2017, (01): 114-117.
[7] Barkley A.P. Multinational food corportations and trade: the impact of foreign direct investment on trade in the U.S food Industry//Ramo. R. Multinational a gribusiness. New York: howorth press, 2005.
[8] Blonigen. In search of Substitution between Foreign Production and Exports. Journal of International Economics, 2001, 53 (1): 81-104.

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