The Study On The Influence Of Export Trade On The Economic Growth Of Shaanxi

While economic globalization and integration has become an irreversible trend, there is not a single country or region that could be completely independent regarding economic development. International trade is highly valued worldwide as it enables countries or regions to maximize their comparative advantages, which leads to optimal resources allocation and much higher efficiency around the globe. In practice, it does play an important role and provide great benefits for almost all countries.China has made remarkable achievements including both economic and international trade since Reform and Opening-up. For instance, form 2003 to 2006, China maintains a 10.4% annual GDP growth rate in relative to a 4.9% annual growth rate overall, and it's the third largest countries for four consecutive years in terms of international trade volume. As a matter of fact, international trade, especially enormous exports which leads to huge international trade surplus, has become more and more important to the overall economic development in China. Specifically, international trade has an effect that accounts for roughly 65.7% of China's GDP in 2006.As an influential province in terms of total economy volume, Shaanxi has a higher than average overall GDP growth rate but a lower than average GDP per capita nationally. However, Shaanxi's overall economy development and people's living standards still have a big discrepancy in comparison to the eastern coastal area. Fortunately, as China has entered WTO and the grand development strategy within western area is in progress, it's would be great for Shaanxi to take advantage of these opportunities to accelerate its economic growth, specially through exports.In this article, we discussed the importance of exports to Shaanxi's overall economy based on detailed researches on numerous theories and both qualitative and empirical analysis. Firstly, we reviewed many theories regarding economic growth, exports, and the relations between them. Secondly, we analyzed the present status of Shaanxi's economy and exports by researching public materials and statistics. Thirdly, we carefully investigated the effect of exports on overall economy regarding Shannxi province and its compositive area, using econometric models. Finally, we summarized several problems concerned exports and provided some suggestions on how to improve current situations.