China Foreign Trade And Economic Growth

Economic Growth is always the key content of Economy research, Since the World War II, the international process of producing and exchanging have been greatly promoted because of the new science and technology revolution. Countries becomes more and more rely on each other. No one can get a fast economic growth in a block out environment. Developing the foreign trade seems to be the most important thing to every country.Since the reform and opening-up, Our foreign trade developing rapidly and the scale of foreign trade becoming larger and larger, which drives the economy growing fast. Today, when we restudying the environment each country faces, We can realize we are living in a totally different world from before. Our economic development has entered into an international competition age which is more open than before, we have to face more drastic challenges. With the constant developing of economic integration and globalization, China, as the third largest international trade country, has played an important role to the international economy. The issues arising from international trade have attracted widely attentions, So demonstration analyzing the relations between foreign trade and Economic growth is very useful both in theory and empirical.This thesis is based on the theory of economic growth, verified the stability of time series for import and export through a large quantities of datas. At the same time, I have made the cointegration test on foreign trade and economic growth, and come to a conclusion that: There is a stable relations between China's economic growth and foreign trade in the long run, and foreign trade plays an important role in driving the economic growth.Besides, I have analyzed the current situation of our foreign trade, pointing out the problems arises from our foreign trade. Finally, finding out the right foreign trade mode and policy that can accelerate our economic growth largely.