The Study Of China's Foreign Trade And Economic Growth

Since implemented the policy of reformation and openness in 1978, China has experienced a rapid growth in foreign trade and economy. The export of China increases continuously, and the demand of Chinese export commodities and service in the international markets has already been an important component of China's macro-economy demand. Following the improvement of economic income, the purchasing power of the urban and rural residents of our country is strengthened constantly. And demand of goods and service that foreign countries produce constantly increased has also been the important decisive factor of international market demand of a lot of goods and service.For over 20 years, China's share in world trade has risen from less than 1% to 5.7%, and the total volume of imports and exports of China reached 851,200 million dollars in 2003. The development of foreign trade not only accelerates the economic growth of China but also contributes to the transition of ways of China's economic growth. Studying the relation of China's foreign trade and economic growth, helps make the development strategy of foreign trade which accords with China, also helps make foreign trade and economic growth benign and inter-dynamic under the new situation.Applying qualitative and quantitative analysis, this paper makes a systematic study on the relation of foreign trade and economic growth of our country. First, this paper starts with the main theories of foreign trade and economic growth, which states the relation between foreign trade and economic growth theoretically: foreign trade not only promotes economic growth, but also promotes the transition of ways of economic growth through the technological progress; then it is the overview of China's foreign trade and economic growth, China's foreign trade structure (including goods structure, style structure and market structure of foreign trade mainly) and the reform of foreign trade system since the reform and opening-up of our country. On the basis of these, it carries on quantitative analysis of the relation of China's foreign trade and economic growth: use cointergration test to analyze the relation of Chinese import-exports of goods and GDP, growth-rate of imports or exports of the goods and growth-rate of GDP, intra-industry trade and GDP. China participates in the competition situation of international trade through the Chinese goods and service trade competition index. Inthe end, it puts forward corresponding policy and suggestion on how to accelerate China's foreign trade promoting economic growth.