Empirical Research on Variation between US FDI in China and Sino-American Trade

This paper carries on an empirical research dynamically on US foreign direct investment in China and Sino-American trade, adopting Johansen cointegration test, the VEC Model, Granger Causality Test and implus response technology, based on analytical quarterly data in the period from 1995 to 2009. The studying result demonstrates that there is a stable relationship among the US foreign direct investment in China, China´s GDP and Sino-American trade. The implus of US foreign direct investment in China and Sino-American trade makes China´s GDP a long-term volatility.