An Empirical Study Of The Mechanism Of International Trade Influencing Economic Growth In China

The international trade is an exogenous factor of economic growth, being concerned by scholars. The relation of trade and growth is an important subject that all countries must face to in drawing economic development strategy. Quick growth of economic and prosperous international trade in China since the reforms and opening up , make it be a research focus of domestic and foreign scholars . But up to now , there is no conclusion about the relation of trade and growth .So it is necessary to do a further research. Base on the research carried out by other scholars , this research combines academic analysis together with empirical investigation ,and probe into two subjects of trade and growth :(1)the relation between growth and trade since Chinese economic reform and open; (2)the mechanism how trade affects growth.This research review the viewpoint of relative theories and empirical research firstly ,and then summarize the flaws of them. After that ,it begins to research the first subject of two on marco-level. Because international trade is one kind of complementarities to the local market ,and will affect the domestic economic in different ways under different conditions of market .So this research divides the course of economic development into two phases ,and discusses the concrete function of international trade in different phases. But academic analysis is hard to get the causality of them ,we depend on the empirical research to find the answer. The result shows that international trade accelerates our economic growth no matter in short term or long term.Based on this , the article researches the mechanism how trade affects growth. According to theories of economics growth, labor and capital accumulation decide the growth of the country in short term . But the marginal production will turn into zero gradually following the factor input increase . So in long term , total factor productivity will be the key factor of the durative growth. This research demonstrates that international trade can play positive roleto the determinant factor of economic growth-labor, capital accumulation,human capital accumulation and technology.