Sino-Japanese Trade’s Contribution Rate To China’s Economic Growth

The relationship between foreign trade and economic growth of a country has been one of key issues in economic research.The relation between China and Japan is increasingly close. The trade between China and Japan will or will not contribute to China’s economic growth,which is worthy of analysis.The data of China’s GDP, Sino-Japanese exports and imports is selected from1984to2011. By stability analysis,Granger test,as well as cointegration analysis,the paper analyses the relationship between imports,exports and economic growth.The paper makes a research of primary products,manufactured goods and China’s economic growth. According to Standard International Classification,the Sino-Japanese trade products are divided into ten categories.According to the formula of contribution rate of imports and exports to a country’s economy, the ten categories’rates are calculated from1984to2011.The conclusions include the total exports is Granger of China’s GDP. Sino-Japanese total import and export volunme is Granger of China’s GDP.There is a long-term cointegration relationship between Sino-Japanese imports,exports and GDP. Exports of primary products in the Sino-Japanese trade is Granger of China’s GDP. The total imports and exports of primary products is Granger of China’s GDP. There is a long-term cointegration relationship between imports of Sino-Japanese primary products, exports and GDP. Exports of manufactured products in the Sino-Japanese trade is Granger of China’s GDP. Imports of manufactured products in the Sino-Japanese trade is Granger of China’s GDP. The total imports and exports of manufactured products is Granger of China’s GDP. There is a long-term cointegration relationship between imports of Sino-Japanese manufactured products, exports and GDP.The contribution rates of ten categories of Sino-Japanese trade products are diverse.With China’s economic development and optimization of the industrial structure, the contribution rate of the primary products is gradually reduced and the contribution rate of the manufactured products is gradually increasing.