Relations between China's Foreign Direct Investment and Trade with Brazil

摘要

As the emerging economies and major developing members of WTO, the bilateral trade of China and Brazil has grown robustly over the past few years, although with the conflicts on trade frictions and anti-dumping issues. The foreign direct investment from China to Brazil has also increased rapidly under the effect of kinds of factors. The aims of this paper are to examine the causal relationship between China's outflow foreign direct investment (OFDI) and trade (imports and exports) to Brazil, and to find out whether exports from China are complements or substitute to the FDI in Brazil. The results indicate the growth of China's imports of primary products and exports of manufactured products cause the growth on OFDI to Brazil significantly, while the OFDI to Brazil shows no significant causes on China-Brazil bilateral trade values.