ISSN: 2222-6990
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This paper uses PRISMA method to systematically review the comprehensive impact of foreign direct investment (FDI) and foreign trade on China’s economic growth, explore the role and synergistic effect of FDI and foreign trade in different industries and regions. This paper found that FDI promotes economic growth through technology spillover, innovation enhancement and export competitiveness enhancement, especially in high-tech industries. Foreign trade optimizes export structure, promotes regional integration, and strengthens FDI. The synergies between FDI and trade are prominent in high-tech industries, but weak in labor-intensive industries. Regionally, the eastern China has obvious synergies between infrastructure and policy support, while Central and Western China has not fully released its potential due to insufficient technology absorption capacity. This paper provides new insights for promoting economic growth and realizing regional coordinated development, and also providing lessons for other developing countries’ economic development.
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