The Research On The Influence Of Import Trade To Economic Growth In Zhejiang

Since The World War II, the impact of trade on economic growth becomes a hot issue of economic academic research and discussion. The research only stressed the influence that exports impose on economic growth. But the trade includes both exports and imports, so we only study one aspect of foreign trade is clearly not enough. It does certainly not fully reflect the impact and functions of trade on economic growth. Because of the above case, the major research of this paper is the influence of the import trade on economic growth.This paper selects the import trade in Zhejiang Province as the scope of the study ,and taking an the new theory about economic growth as the theory base .this paper tries to study the relationship of the Zhejiang Province's import trade and economic growth from both theoretical analysis and empirical testing. At the beginning of this paper is the review of theory and research findings, followed by is the focus of this paper that is the empirical analysis. In the empirical analysis, at first we mainly use co integration analysis to analyze the relationship between the import trade and economic growth. Then we establish an equation simultaneous equations model by The National income identity .The equation includes investment, consumption, import and export. We use the equation to analyze the relationship between the import trade and economic growth of analysis of Zhejiang Province. At last we analysis the relationship between the import trade and total factor productivity (TFP). Empirical results show that the import trade and economic growth in Zhejiang Province exists the short-and long-term relationship. The import trade for Zhejiang's economic growth is not only a direct contribution, and also through a series of dynamic conversion process indirectly acting on the long-term economic growth. Import trade promotes the economic growth of Zhejiang Province through the promotion of technological progress.