Empirical Analysis On The Border Trade And Economic Development In Inner Mongolia

Border trade is a special form of international trade, which is to point to the merchandise trade between inhabitants in the adjacent countries'border areas. Early 1950's our country begins to develop border trade. Between 1960's and 1970's, border trade was once suspended due to political reasons. From early 1980's, Border trade began to be resumed. At present border trade comes down in position in all forms of foreign trade, and the development of border trade is encountered with unprecedented challenges. So many people think that border trade has little prospect. In fact, China's border areas development needs border trade, and border trade is beneficial for nationality unity and border defense. So even at the rapid development of economic globalization background, border trade will also exist for a long time and play a positive role.Currently, the study on the relations between international trade and regional economic tends to emphasis on the regional economic growth. The research on the relations of border trade and regional economic is still relatively few. As to qualitative research, in 2007 Liu Fang firstly quantitative analyzed the relation of China's border trade and regional economic, and her study was based on the analysis of the eight major border provinces. In fact, because of the week economic base in the border areas, to evaluate the effect of border trade, we shall not only see the local role in promoting economic growth, but also see the whole role in promoting social progress. So the relation of border trade and extensive regional economic growth should become a new research perspective; The situation of China's border provinces and autonomous regions is not the same, neighboring countries'political and economic environment is very different, and the development process and the status of border trade in border regions is surely vary. Thus the study based on a single border province to analyze the relation of border trade and regional economic is very necessary.Inner Mongolia Autonomous Region is located in the north of China, which promote border trade with her unique advantages. Inner Mongolia border trade has experienced rapid growth in 1998-2001, but after 2002 border trade the speed of the growth is far below its normal level. So fully aware of the current fully aware of Inner Mongolia border trade to economic growth, to be paid enough attention to the Inner Mongolia border trade put in place to development, are an urgent need to address the problem.This paper demonstrated in five chapters:The first chapter is mainly a general introduction. It focuses on the topics of practical and theoretical background and significance, the paper of ideas and structure, content and innovation, and so on.Chapter 2 is the review of the literature for this paper. It reviews the relevant theoretical and empirical research on international trade and economic growth, border trade and regional economic growth in the research. So it provides a theoretical foundation and basis for this paper.Chapter 3 is the introduction and analysis of the border trade in Inner Mongolia. It focuses on the advantages, the development process, the development status and characteristics of the border trade in Inner Mongolia.Chapter 4 is of Inner Mongolia's economic development and the associated analysis. At first, it qualitatively describes the status of Inner Mongolia's economic development. Then it selects 14 quantitative indicators since 1986 to get a comprehensive evaluation of economic development of Inner Mongolia.Chapter 5 is the empirical analysis of the relationship between border trade and economic development in Inner Mongolia. Firstly it validates the long-term co-integration relationship between the two. Then with Granger causality test it further analyzes the causal Relations. And then using the impulse response function, it analyzes the process and the impact of specific direction. At last the conclusion of the above study is summarized.This paper is focused on the empirical analysis of the relationship between border trade and economic development in Inner Mongolia. And the economic development includes economic growth, economic efficiency, social benefits, industrial structure, technological progress and environmental protection. It uses cointegration test, granger causality test and impulse response analysis. So the paper may extenses the previous areas of study, on a systematic structure, with a relarive new analysis method.