Research On Economic Development Stage And Effects Of Trade And Fdi On Economic Growth

With the speeding up of the global integration process, it has greatly deepened mutual communication and exchanges in the field of economy among countries, and the trade and FDI are also presenting the trend of liberalization and globalization, which become an important force to promote the economic growth. Then, with the change of economic stage, it has become more important significance for the trade and FDI both of two kinds of way pushing effect on the change of economic growth.This paper divides the China into the east, the middle and the west according to the different stage of economic. First of all, the paper reviewed the relationship between the trade and economic growth theory, the FDI and economic growth theory, the mix of trade and FDI theory, the economic growth and industrial structure; Secondly, the paper analyzes the theoretical mechanism of the trade and FDI that take which channels to promote the economic growth, from the theoretical perspective of the different stages of economic development and industrial structure, how will the effect change of export, import and FDI on economic growth; Then the paper respectively analyzes the trade and FDI, the stage of economic development, the situation of industrial structure from the perspective of regional and overall development. Finally, the paper decides the tipping point as China entered into the WTO, which divides the different development stages of economic development and industrial structure in the east, mid and west region, in order to study the evolution of regional economic development and industrial structure makes the changes of the promoting effect on economic growth in order to demonstrate whether the evolution of economic development is based on the change of industrial structure.The empirical results show that the developed eastern area’s exports have the strongest promotion effect on economy, but its promotion effect is weakening now and weaker than the imports’ promotion effect which is still increasing now, compared with undeveloped mid and west of China. Furthermore, FDI’s growth effects on all the three economic areas are increasing. The results are mostly in line with theoretical expectations; Under the different development level of industrial structure, the eastern area’s exports promotion effect is weakening, while the import promotion effect is starting to increase; The middle region’s exports promotion effect is more significant, the same trend presents on the import; The western area’s exports promotion effect is increasing, while the import promotion effect is also increasing; The promotion effect of FDI inflows is enhancing in east and west except the middle area, the results are basically in agreement with the theory, and it also presents the similar trend compared with the different stages of economic development.Lastly, based on the results of the empirical and descriptive analysis, the policy mix of trade and FDI need to be adjusted with economic development, to put forward policy suggestions for the development of trade and FDI in future.