A Study On International Trade And Economic Growth

In the process of globalization, economists pay more and more attention to the issue of the function of the international trade in economic growth. Since China is one of the largest developing countries in the world in terms of trade volume, we find it both theoretically and practically significant to conduct deep research into the role of trade in China's economic growth.Based on the previous study of the other economists, we reexamine and carry out an all-round research into the issue of international trade and economic growth theoretically, historically,empirically and experimentally in totally new perspective. Firstly, the dissertation studies and evaluates the economic thoughts of the relationship between international trade and economic growth in Marx economics and the other western economic literature. We contend that the foreign trade theory in Marxism not only contains all the basic features and elements found in the other economic literature concerning the role of international trade in the process of economic growth ,but also is based on a more profound theoretical foundation. Marx thinks that international trade can stimulate economic growth. he argues in uniqueness that free trade and trade protectionism are just two seemingly independent but,de facto, coexisting, interdependent,related and convertible economic policies which can be alternatively applied in different stages of economic development. And the change of the policies just reflects the position and strength of the capitalism. Undoubtedly, Marx theory about free trade and trade protection are more justified than those of the other economists who tend to argue for the dichotomy in the role of free trade and trade protectionism on economic growth.Secondary, after the theoretical analysis, we conduct a historical study of the international trade and world economic growth. We find that international trade not only reflects the development of the world economy but also can stimulate the world economic growth to great extent. And the ups and downs of nation states and some regions are closely related with the prosperity and downturn of international trade. To make a more scientific probe into the effects of international trade upon economic growth, we build a cross countries model and use panel data to make an empirical study. We find that overally, international trade promotes the economic growth of the sample countries, but the extent of positive effects of the international trade upon economic growth varies with the types of the countries.Thirdly, based on our empirical study, we further probe into the mechanism of positive effects of international trade upon economic growth and the basic conditions for the mechanism to be realized. We argue that international trade positively affects economic growth mainly through capital accumulation, industrial upgrading, technological progress and institutional change. The realization of the dynamic benefits of international trade hinges upon the external environment, appropriate trade strategy and policy, the development of market economy and institutional condition.Fourthly, followed by theoretical and empirical study, we focus on the international trade role in the economic development of the representative countries, U.S.A, Japan and South Korea, hoping to draw some of their historical experience which may be condusive to China.Finally, we study the role of China's foreign trade in China's economic growth from historical, empirical and policy point of view. We find that undoubtedly, China's foreign trade exerts a great positive effect upon China's economic growth. But we also draw the attention that China is faced with some serious problems such as degradation of trade structure, deterioration of the terms of trade, trade and its negative impact on environment and trade friction with trade partners, all of which may negatively impact the sustainable development of China's foreign trade. And to sustain our foreign trade and economic growth, some strategy and policy solutions are provided accordingly.