| The foreign direct investment and foreign trade are considered as the catalyst of economic growth and development. The relationship among the three is always the focus of scholars at home and abroad. Since 1980s, the foreign direct investment and foreign trade in China saw sharply growth. China steps up great efforts to promote export-oriented economy and expand trade. Meanwhile, it implements a series of measures to attract foreign direct investment, in a move to cover the fund shortage. With these efforts, the foreign direct investment and foreign trade have been making greater contribution to China's economic growth. Across the research on relationship among the three, that between foreign direct investment and economic growth or between foreign and economic growth is in the majority, and we can hardly find the study on the relationship among the three. Most of the study is on state level rather than regional level. XJ is located in the western border, and it is the frontline to westward opening-up. XJ, China borders on some Central Asian countries. It is the important transportation hub between China and Shanghai Cooperation Organization (SCO). Since the implementation of reform and opening-up, XJ's society and economy have got rapid development and achievements in foreign trade and attracting foreign investment. Throughout the 30-year development, the remarkable results on the two have gone hand in hand with the support of the central government.XJ's outline of the 11th 5-year plan on development of national economy and society requires accelerating the westward opening-up, and enhancing the level of opening-up. As planned, inviting business and drawing capital should be strengthened, and the concerned preferential policies of the state and XJ should be carried out. In 2007, the State Council released a document especially to XJ: Suggestions on Furthering XJ's Social and Economic Development, in a move to build XJ the open door to the west, important pivot of expanding economic development, and enhance the businessmen invitation and capital drawing in export processing zones.Hit by the financial crisis, XJ's foreign trade decreased. By late 2009, the whole year's import and export volume was 13.828 bln USD, 37.8 percent fall as against that the year before. The import volume ranked 16th nationwide, and export, 12th. The trade volume with some major trading nations including Kazakhstan, Kyrgyzstan and Tajikistan saw obvious drop. However, that with several developed countries, such as America and countries of European Union, saw rapid growth. The imports and exports at ports of XJ reached 22.29 bln USD, and both the cargo handling value and capacity ranked the top among China's land ports. XJ's role of great passage towards the west is consolidated. The capital drawn in also increased. The foreign investment in actual use reached 216 million USD, a rise of 13.6 percent year on year. The Contractual capital value was 470 million USD, dropped by 26.7 percent. Portugal, Poland, Mauritius and Bermuda firstly invested in XJ. At present, there are 49 countries and areas invested in XJ, 14 enterprises among the World Top 500 have settled down here, becoming the backbone. The quality of foreign investment improved evidently.Now XJ is under rapid progress of the reform and opening-up, modernization and the implementation of Great West Development Strategy. The fresh round of assistance to by central government has kicked off in full swing; XJ meets an incomparable opportunity of great construction, opening-up and development. Based on this, XJ should make full use of the preferential policies in line with its reality, seize the good opportunities, develop the foreign trade and attract foreign businessmen, and achieve rapid economic growth with all efforts. Thus the study on the influence to economic growth from the foreign direct investment and foreign trade bears great significance.In line with the above background, this thesis takes XJ as its research object, adopts both theoretical analysis and case study, introduce in cointegration theory and Error correction inspection model, to deeply analyze the relationship between foreign direct investment, foreign trade and economic growth through stationarity test, cointegration test, granger causality test. The thesis at last makes suggestions on policies to the foreign trade and drawing in foreign direct investment to XJ according to the empirical results. |
