Theoretical And Empirical Analysis About The Influence Of Foreign Trade On Economic Growth

The influence of foreign trade on economic growth has been a key subject to developing economic. From the found of the People's Republic of China, especially from adopting an open policy, the economy of China is growing fast accompanied by the rapid expand of the foreign trade. Which have provided ample statistics data and study cases for the research of the relationship between foreign trade and economic growth .In this thesis, the inherent relation between foreign trade and economic growth were analyzed and summarized, in the same time, a series of model was used to analyze the actual statistics, of China, And according to the outcome through analysis, try to find out the challenges which is now faced with , and then put forward a series of advice to promote China's foreign and economic growth. There are six chapters in this paper.In chapter I, has expound the background and the meaning of studying, has point out the train of thought and analytical methods that have adopted in this paper.In chapter II,the author has Define the concept of the economic growth. Have investigated Denison's (E. F. Denison) analysis on economic growth factors and so of Kuznets' (Simon Kuznets ). Promoting the economic growth theory after have reviewed classical economic growth theory and modern Harold - Domar's model, Solow's model and contemporary technology promoting economic growth theory.ChapterIII is about the theory that Trade promotes the economic growth and trade strategic which various countries have adopted in history. Have investigated the theory of both sides that the function of trade on economic at first, then reviewed the trade strategic that developing countries adopted in different periods, pointed out that developing big country such as China, should adopt comprehensive trade strategic under the heavy situation.Chapter IV consisted of 4 parts. The huge accomplishment especially processing trade in foreign trade and economy obtained by China, especially after opening to the outside world, was reviewed in part one .In Part two, the structure changes of Chinese foreign trade were analyzed, and the great improvement in Chinese trade volume andtrade structure was revealed. Furthermore, the relation between foreign trade and China's economy was analyzed using econometric model in the third part. The result indicated that total foreign trade , export , import have much dependence with the economic growth, foreign trade has obvious facilitation to the economic growth of China: The total import and export value increases by 1% and causes the economic growth rate to rise by 0.133%, the total export increases by 1% and will drive the economic growth rate to rise by 0.106%, the total import value increases 1% and drives economic growth rate by 0.162%.In part IV ,the author has Introduced concept of terms of trade, used evaluation index about terms of trade to analyze China's present foreign trade, and has drawn a Preliminary conclusion: the terms of trade of the price and of the key element of our country have worsened, but the terms of trade of the income have not worsened , China has not entered the conclusion that" the pauperization increases" yet.In chapter V, Have analyzed the subject problems existing in China's foreign trade: 1, export benefit and trade structure is relatively low; 2, the ratio of processing trade is too high.; 3, the imports and exports market is centralized;4. the foreign trade system was not made in order yet 5, China have to face up with new trade barriers .in chapter VI .Have proposed the countermeasure and suggestion of the foreign trade .Firstly, strengthen macro adjustments and controls, adjust the foreign trade policy; Secondly , improve the international competitiveness of foreign trade; Thirdly, accelerate the structural adjustment, create the terms of foreign trade.In the paper, the method structure analysis and passitive analysis are mainly used, the effect of foreign trade on economic in China was concluded. At present, judgements that China become the world factory is highlighted., so , Find out...