Empirical Research On Foreign Trade And Economic Growth

Since China started its opening policy in 1978, China's native economy develops very quickly and foreign trade is at all-time active. The growths of import and export trades are always in the leading place in the gross domestic product (GDP) and foreign trade dependency keeps a high level in recent years. Obviously, China's foreign trade are motivating and promoting the economy's development.Based on the existing real data, this article analyses and researches the relation between foreign trade and economic development. The article first states the main theories that foreign trade promotes the economical development, and theoretically clarifies the relation between foreign trade and economy: foreign trade not only promotes the development of the economy, but also promotes the change of the economy by technology's improvement. Then, the article describes current situations by the relation between foreign trade and economic development basically. Lots of data materials reflect the characteristics of development, frame on economy and foreign trade. Rely on basic theories and reality, author also gives us a clear criterion: the tracks of economy and foreign trade are same. The more reliable the foreign trade is, the more developed the economical frame is, and the diversity of China's foreign trade market promotes the stability of China's macro economy. Later, author analyses the relevance and elastic connections of foreign trade and GDP by researching the examples and models. At last, combined the results and the real national conditions, author supplies the relevant advices and suggestions on promoting foreign trade and the development of economy.