The Influence Of Foreign Trade On Economic Growth In China

This paper tests positively the relation between the foreign trade and the economic growth in China on the basis of existing theories and positive analysis. When testing the trade's contribution made by foreign to economic growth by different methods, we find that trade is an important factor to promote economic growth.In this paper, the theme is the relation between China's foreign trade and economic growth. The basic idea is: as the most important result of open-door policy, the development of foreign trade of China has made important contributions to China's economic growth. The fluctuation of foreign trade has a significant impact on China's economic development. This paper goes into the relation between foreign trade and economic growth. At the same time, China's economy is undergoing a transition from a planned economy to a market one, from a closed economy to an open one. The role of foreign trade growth in economic restructuring has changed, which is reflected in the varying impact of import and export growth on economic growth.This paper first introduces its own train of thought and significance on the basis of the status quo of China's foreign trade, and presents conclusions and summaries of researches on foreign trade and economic growth at home and abroad. Then the paper establishes a cause and effect model with the variables of import (IM), exports (EX) and economic growth (GNP). Besides, the contribution degree made by foreign trade to economic growth is measured with the example of Shandong province. At the same time, the theoretical analysis is carried out with time series analysis followed by the testing of the model. Finally, according to China's actual national conditions as well as the relation between foreign trade and economic growth in different times and areas, the conclusion and implication is drawn.Different from previous studies on this issue, this paper has the following characteristics: First, it gives a theoretical analysis and related data on the relation between foreign trade and economic growth with the help of a theoretical model which is to be tested by China's practical experience. Second, the positive analysis of foreign trade on economic growth is carried out. Third, various effects of foreign trade on economic growth in different times and areas are analyzed. Thus the corresponding reflection is made.Significance and reflection: foreign trade which plays a key role on China's economic growth should be vigorously promoted. For the promotion of flourishing trade, we cannot pursue high profit regardless of quality. The import and export trade should not only focus on the increase of quantity, but also on the terms of trade, the improvement of the competitiveness of goods and the transition of development mode as well. Further consideration is given to the widening economic gap mainly caused by difference of foreign trade between eastern and western regions. Then the policy proposals will be put forward.