Relationship between FDI and Export Trade in Shaanxi Province in China: A Co-integration Analysis Based on Data from 1996 to 2015

Abstract

With the accelerating process of economic globalization, implementation of the Western Development and construction of the Silk Road Economic Belt, the impact of Foreign Direct Investment (FDI) on Shaanxi’s export trade becomes more and more obvious. The data from 1996 to 2015 show that their changes are synchronized. To explore the effect of FDI on export trade, in order to make full use of FDI and promote foreign trade development in Shaanxi Province, this paper studies the relationship between FDI and export trade in Shaanxi province through Co-integration Analysis, and put forward relevant suggestions, hoping to have a certain reference value.

Keywords: Foreign Direct Investment (FDI), export trade, Co-integration Analysis