Study On Western Area's Foreign Trade Improving Economic Growth

Foreign trade will bring a country or an area two kinds of profit: one is the direct profit that means foreign trade's economic benefits; the another is the indirect profit, that is the effects of foreign trade on economic growth. Obviously, these two kinds of profit especially the latter must be taken seriously in western area. But the fact is that the indirect profit is not paid more attention to not only by study field but also western area's trade practice. According to existing theories, the study on western area's trade-growth effect is not only lack but also scattered extremely. According to western area's trade practice, there are a lot of states of affairs that foreign trade deviates from economic growth.So the paper will deal with western area's foreign trade improving economic growth. The content of the paper includes two aspects: one is the general theories about trade-growth effect; the another is the practice about trade-growth effect of China's western area. The full text is divided into six parts. In order to show paper's content and structure, every part will be introduced briefly as follows.The first chapter: Introduction. This part mainly sets forth study background, aim, meaning and internal and external study trends. And study train of thought and methods are also set up.The second chapter: Affecting factors on economic growth. This part summarizes the theories of affecting factors on economic growth. Classical political economy's theory, Marxian theory and the west modern economy's theory are included. The studying on long-term affecting factors indicates that key elements supply increasing and total key elements productivity improvement are main factors that bring out economic growth. The studying on short-term affecting factors indicates that the main factors of determining short-term economic growth are investing demand, consuming demand, and net export demand.The third chapter: Action mechanism analyzing on trade-growth effect. This part mainly analyzes and sums up how foreign trade acts on economic growth via long-term and short-term affecting factors. Analyzing result indicates that trade-growth effect can be achieved through two ways that are "foreign trade-supply increasing-economic growth" and "foreign trade-demand increasing-economic growth". The former is called long-term trade-economic effect, and the latter is called short-term trade-economic effect. Economicgrowth due to increasing supply is lasting, so keeping long-term trade-growth effect is more important to realize a country and an area economic growth.The fourth chapter: Positive analysis of western area's trade-growth effect. This part applies relative analytic indexes to analyze western area's foreign trade practice. The state shows foreign trade is very important to western area's economic growth. But western area's foreign trade is not through action mechanism of trade-growth to improve economic growth. The reason is that foreign trade has been ignored for a long time, especially input trade. So it is imperative and important to choose a reasonable and suitable trade strategy, thereby improve western area's trade-growth.The fifth chapter: Referring to international experiences and choosing western area's trade strategy. This part analyzes western area's comparative superior position and inferior position and introduces Brazil and India trade-growth experiences. Having applicably analyzed existing trade strategy, "dam" trade strategy must be chosen by western area in light of different economic development stages.The sixth chapter: Development principles and suggestion of western area's trade-growth. This part puts forward development principles and suggestion of western area's trade-growth. Economic development globalization and China entrance WTO supply western area with extremely good opportunity. If western area grasps this opportunity tightly, it will achieve economic growth and exceed coastal area's economy in the future.