The Impact Analysis About Processing Trade To Economic Growth Of Chongqing

Since the reform and opening up, with the continuous development of economicof Chinese, Processing trade pattern by the previous labour intensive to change tocapital and technology intensive，and accompanied by the phenomenon of transfer ofprocessing trade to the mainland, the effect of processing trade on how to promoteeconomic growth, as the processing trade has a special and representative of the city ofChongqing, processing trade and economic growth in Chongqing is exactly what kindof effect relationship, Chongqing’s processing trade started in1983, the municipality in1997after the processing trade, but there is a phenomenon of shrinking. In2000to startthe processing trade in Chongqing formally on track with the high speed of economicgrowth, processing trade is growing even more rapidly. Processing trade has become animportant part of Chongqing City, the modern industrial production and circulationsystem, have influence on the economy, capital, the local industrial structure etc.Based on the rapid development of processing trade in ChongQing, this essaycombines with theoretical achievements of our predecessors and introduces the idea thatthe processing trade has a positive link with the economic growth in Jiangsu Province,especially, focused on the dynamic effects to economic growth. Full-text consists ofthree parts, namely, theoretical analysis, empirical evidence, and applied research.Through theoretical analysis, this essay researches how does the processing tradepromote Jiangsu economic growth and establishes the appropriate mechanisms for thepromotion. In the empirical part, this essay testes the long-term relationship amongvarious effects、processing trade and ChongQing economic growth by using theco-integration testing method. Then, establish VAR models and use impulse responsefunctions and variance decomposition method,to make a more complete and painstakinganalysis of the lag effect of processing trade. The value of theory is to apply. Throughthe above analysis, this essay has a basic evaluation of the status ofprocessing trade in ChongQing. Finally, put forward some policy recommendations andhope that they will have a positive guiding significance for the further development ofprocessing trade in ChongQing.