Analysis Of Technology Spillover's Mechanism To Explain How Foreign Trade Promotes Economic Growth

With the accelerated development of human civilization within a century, the dramatic progress of the world economy has been achieved. When we look-in the changes of factors which were devoted into the world economic growth, it is no hard finding out the increasing knowledge which brought the technical progress is the key contributor to the world economic growth. The technical progress in every country is not only brought by the sustained capital investments which build up capital stock in research and development by its government, but also by the imitation, digestion and absorption to the foreign advanced science and technology. In modern society, world economy is integrating,one country's economic growth is droved fully by its technical innovation that is not only a time-consuming work but also a waste of resource for repeating research and development on these foreign technologies in existence.International trade is an important channel for technology transfer and spill-over, the technical spill-over through international trade has a significant impact on one nation's technical progress, especially to these developing countries with limited capital stock and lower level technology. International trade can bring in advanced foreign technology, knowledge and products, which benefits not only the import and export related industries which imitate and absorb directly to upgrade one nation's technology, but also the non import and export related industries which imitate and absorb indirectly to shorten technical difference to the technology advanced nations. The progress of technology can bring the growth of total factor productivity to promote economic growth.Thirty years after the reform and open police was launched, the Gross Domestic Product in our country has increased 18 times, and the value of foreign trade has been ranked number 3 in the world in the same time. Since the level of our nation's technology is low and processed trade plays a key role in foreign trade, the spill-over effect in foreign trade has been exerted insufficiently in promoting our technology to boost total factor productivity for the growth of economy. The reason for that is that we fail to have a fully understanding for the effects of technology spill-over in promoting our technology to boost total factor productivity for the growth of economy. This thesis, which focuses on the exhaustive analysis in the relationship between international trade, technology spill-over and economic growth, and in-depth research based on our nation's reality, is strived for explaining the technology spill-over in our foreign trade promotes economic growth and is helpful to have a in-depth understanding for the effects of technology spill-over in promoting economic growth.The thesis is divided into five sections. At first, the background and meaning for this thesis is introduced, and then the related researches and documents for the effects of technology spill-over in foreign trade can boost the progress of technology to promote economic growth within the world was summarized in two parts followed by a summary: one based on the effects of technology spill-over import trade can boost the progress of technology to promote economic growth and the other one based on the effects of technology spill-over in export trade can boost the progress of technology to promote economic growth. At last, this author's thoughts and research method, contents, structures and innovation for this thesis are presented. In the second section, following the method which is used in The History of Economic Thoughts—introducing the leading figures first and then their thoughts, the theories and researches on the relationship between international trade, technology spill-over and economic growth are fully sorted out which include the theories on the theories on the relationship between international trade, technology spill-over and economic growth, the empirical researches on the relationship between international trade, technology spill-over and economic growth. The theoretical analysis on the effects of technology spill-over in international trade can promote economic growth is presented in section three by five parts. In the fist three parts, the logic is international trade brings technology spill-over, and the technology spill-over boosts the progress of technology, finally the progress of technology promotes economic growth. For explaining the reason for the technology spill-over boosts the progress of technology, both the import and export trade are considered. In the last two parts, the author analyses the channel for the technology spill-over by quoting capital goods, intermediated goods, export goods and international technology trade and the influencing factors for these channels. For the fourth section, the relationship of international trade, technology spill-over and economic growth is empirically studied. After the positive result is brought by the empirical study on the relationship between international trade and economic growth, the empirical study on the relationship between export trade, technology spill-over and economic growth and the empirical study on the relationship between import trade, technology spill-over and economic growth are carried on. In the final section, the major conclusion is conducted upon the previous theoretical and empirical studies; the effects of technology spill-over in international trade do boost technical progress and promote economic growth finally. Suggestions based on the result of previous theoretical and empirical studies are listed in the final part of this thesis.