Analysis of influencing factors of foreign trade in Sichuan Province

Abstract

This research uses a combination of principal component analysis and multiple linear regression analysis for the analysis of the influencing factors and the degree of influence on the foreign trade of Sichuan Province, China. Firstly, a visual analysis of the current situation of foreign trade in Sichuan province is conducted, which includes the structure of foreign trade mode, foreign trade commodity structure, and foreign trade partner structure of Sichuan province. Secondly, the indicators that may affect the foreign trade of Sichuan province are selected and the empirical model is constructed using these indicators. Principal component analysis was used to extract principal components, and then regression analysis was conducted on the extracted principal components. Finally, the empirical results show that the gross regional product, consumer price index, foreign direct investment, average disposable income of residents, and investment in research and experimentation have a positive impact on Sichuan's foreign trade, and the RMB harms foreign trade.