With the pace of economic globalization, the international capital flows are increasingly active, foreign direct investment has become the main capital flows and main channel for developing countries to access to external capital, and it increasingly influence host country’s economic and social development especially developing host country. This paper describes Zhengjiang’s general situation of foreign direct investment and export trade; by theoretical and empirical analyses of FDI’s export trade effect, analyzed the performance contribution of FDI in Zhejiang export trade and the trade effect of FDI in export trade effect. Research shows that FDI has positive effect on expanding export size and optimizing export structure, also it has trade substitution effect and indirect trade effect. Lastly, propose some advice to promote the effect of FDI to foreign trade.
KEYWORDS：foreign direct investment; export trade; export structure; performance contribution.
