Foreign Trade And Economic Growth In Shandong Province

Since China started its opening policy in 1978,china's native economy has developed rapidly and Foreign trade is at all-time active,The growths of export and import trades are always in the leading place in the gross domestic product. Especially after joining the WTO in 2001,China has immersed in world economy completely, international trade has played an inportant role in Chinese economy growth.and in recent years,foreign trade dependency keeps a high level.Many scholars study the part the foreign trade played in economy.Shandong,as a coastal province open to the world,Economy growth and foreign trade has gone faster than most other provinces in china.In 2009,total economic output of shandong province reached about 3.4 trillion yuan,Meanwhile,the foreign trade volume reached about 138.6 billion U.S. dollars,Respectively accounted for about one-tenth of the country and the sixteenth.this paper studies shandong province,trying to find out to what degree the foreign trade boost economy development,propose a solution for the problem,to the less developed provinces has reference.Applying qualitative and quantitative analysis,this paper makes a systematic study on the relation of foreign trade and economic growth of shandong province. In the theory section,the paper reviews the foreign trade and economy growth theory with which some important opinions are gave out.And then,the paper focus on the medium with which foreign trade draws on to boost the economy. In demonstration section, ,the paper first analyzed the current situation of shandong province foreign trade.the paper uses GDP,investment,cunsumption,export,net export,etc.to outline foreign trade and economy development of shandong province,and then studies the relationship based on the co-integration test as well as error correction model on export,investment,import, cunsumption and economy growth.After research,the paper comes to a conclusion that:Forergn trade could drive shandong's economy growth permanently.Both export and import can boost economy growth.especially in the long run,foreign trade play a significant role in promoting the economic growth.Bisides.Finally,finding out the right foreign trade mode and policy that can accelerate shandong economic growth lagerly...