اثر سرمايه گذاري مستقيم خارجي بر تجارت خارجي كشورهاي منتخب آسيايي و اقيانوسيه

The Impact of Foreign Direct Investment on Foreign Trade in Selected Asia-Pacific Countries

The attraction of foreign direct investment (FOIl and its relevant effect on international trade has been generally one of important issues in the literature. FDI causes an increase in production capacities and meanwhile it plays a crucial role in constructing linkage between economies worldwide throughout export market expansion, spillovers and technology transformation. The objective of this research is thus to examine the effects of FOI inflows on foreign trade of host countries. A trade model is specified and estimated by using panel data of 24 seJected Asian-Pacific countries, (which includes 12 East Asia-Pacific countries and 12 countries from the West Asia), in the period of 1980-2005. Empirical results indicate that FDI affects significantly and positively all considered countriesʹ imports and exports, overall, while the impact is more pronounced in the East Asia-Pacific than that in the West Asia region. Hence, the implication is that developing countries like Iran should facilitate and increase FDI inflows to achieve more developed technology and financing.