Abstract

China’s direct investment overseas reaches US$170.11 billion and is US$44 billion more than the actual use of foreign investment, which makes China a net capital exporter. Large scale of Outward Foreign Direct Investment also has a great influence on the export. This article made an estimation on the export effect of Outward Foreign Direct Investment through fixed effect model and Generalized Method of Moment based on the provincial panel data from 2004 to 2014. The result shows Outward Foreign Direct Investment has a positive effect on export whether in the whole country or in different districts, every 1% increase of Outward Foreign Direct Investment will lead to about 0.1% rising in export, and moreover positive effect of Outward Foreign Direct Investment in the middle and western districts is stronger than that in the eastern district.

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