The interaction between foreign direct Investment and Trade in China´s agro-food sector

This paper discusses the Interaction between foreign direct Investment (FDI) and trade in China´s agro-food sector, and carries out co-integration test and Granger test from a angle of the relationship between FDI and import/export in China´s soybean processing industry. It is found that: (1) Promoting the export of China´s agro-food sector, transnational corporations lead to a large scale of import of foreign agricultural products to China; (2) In some agro-food Sectors, including soybean processing industry, trade policies and trade structural spur FDI; (3) There exists positive co-integration and two-way Granger causality relationship between soybean import and FDI in China´s vegetable oil industry.