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Abstract
Sincethe policy of reform and open,China has always uphold the basic principle
of“opening to the outside world”,attracting the foreign investment actively and
developing the external trade vigorously.In March,2004,Premier Wen Jiabao has
proposed‘‘The rise of central China strategy’in the government work report.Those
six provinces(Henan,Shanxi,Hubei,Anhui,Hunan,Jiangxi)have grasped the
opportunity and respond to the call ofnation promptly.To attract the investment ofthe
foreign funds worldwide,meanwhile to develop the external trade vigorously,those
provinces have brought their superiorities on geography into full play and constituted
a series of preferential policies.In recent years,with the rapid development of the
entire economy,foreign direct investment and external trade has been a very
important way of the development of foreign Bade and economic cooperation of the
six provinces in central China,and they have achieved a fast expansion on the speed
and quality of the exports and foreign investments.A large number of data show that,
the wends in development of the foreign direct investment and export trade have
maintained a favorable synchronism,foreign direct investment has a net expansionary
effect on the collective volume and the composition ofthe external trade.
This paper selects the data of foreign direct investment and external trade during
the decade of 2004-20 1 3 of Anhui province and the other five provinces with the
utilization of the eviews and doing the research by the methodologies of example
analysis,canonical parse and comparative analysis.Firstly,employing the correlation
theory of the effect on international trade of foreign direct investment to analyze the
theory evidence of the effect on external trade of foreign direct investments of those
six central provinces,then doing the further analysis on the general situation of the
developmem of external trade and foreign direct investment in these six provinces by
collecting a huge amounts
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