Treat And Measure The Contribution Of Foreign Trade To Economic Growth Correctly

The development of foreign trade at full speed has always been viewed as anengine of China's economic growth in the past over 20 years. But it is controversialthat whether foreign trade could contribute to economic growth and how much thecontribution is.This thesis, through qualitative and quantitative analysis, not only confirms thecontribution of foreign trade to economic growth, but also points out the limitations ofthe classical theory—trade as an engine of growth—and the defects of usingexpenditure approach identity and foreign trade dependency to measure thecontribution of foreign trade to economic growth. Meanwhile, it analyzes thecontribution of export and import to China's economic growth respectively andconcludes that instead of expanding exports blindly, China should encourage moreimports and promote the dynamic equilibrium of import and export.This thesis is helpful to treat and measure the contribution of foreign trade toeconomic growth correctly and is of importance for formulating proper trade policies.