The Study On China Import Trade Spillovers Effects

As the rapid growth in foreign trade and GDP lasts almost 20 years, the effects of foreign trade on economic growth have become an important studying subject in academia, especially how import trade promotes technical progress becomes one of the hottest spots for study.This paper studies the following issues with dynamic and systematic views based on the innovation-driven growth theory. First, the relationship between import trade and Chinese technical progress. Second, the mechanism of import trade promoting technical progress. Third, the influencing factors for import trade spillovers. Through above analysis, we can find out the existing problems as China obtains the spillovers. Empirical analysis referred to Coe and Helpman (1995) for a detailed description of the models on which we base our discussion. The results show that import trade has in deed improved Chinese technical level. What's more, this effects are various in different regions and countries. Specifically, the effects on the central region are the most significant, while on the western is not significant. And the extent of impact on eastern region is intermediate between the central and the western. From the point of different countries' views, China benefits most from Japan, follows from the United States. Finally, this paper presents relevant policy recommendations according to the results of the study. On the one hand, we should improve the spillover mechanism and optimize the spillover environment, such as further expanding opening up and optimizing the trade product mixture, and raise domestic R & D investment level. On the other hand, we should make the western absorptive capacity more efficient, like intensifying R&D investment and human capital accumulation.