ASSESSMENT TECHNIQUE OF FOREIGN TRADE EFFECTS OF FOREIGN DIRECT INVESTMENT IN THE ECONOMY OF THE HOST STATE: THE CASE OF CHINA
Abstract and keywords
Abstract (English):
The present research article describes the authors’ assessment technique for assessing of foreign trade effects of foreign direct investment in the economy of the host state. The study period covers 2000-2020. The empirical basis of the study was official data from international organizations on the Chinese economy, as well as data from the National Bureau of Statistics of China. Approbation of the assessment technique for Chinese economy made it possible to prove the existence of a direct connection between the influx of foreign direct investment into the Chinese economy and Chinese exports. Foreign direct investment makes a significant contribution to the production of exported products. Share of exports produced with the attraction of foreign direct investment in 2012-2021 was 34.27-49.92%. The contribution of vertical FDI to China’s acquisition of imported products is also significant. Thus, the share of imports into China of products related to the operation of enterprises with FDI in China during the same period ranged from 37.9% to 49.35%, which confirms the hypothesis expressed during the study about the significant contribution of vertical FDI to the development of external trade of China.

Keywords:
FDI, vertical FDI, host state, export, import, China, external trade effects of FDI
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