The Theory And Empirical Research On China's Foreign Trade's Contribution To Residents Consumption Welfare At Home And Aboard

Since reform and opening up, China's foreign trade has a great development with the further acceleration of the pace of globalization, and has being one of the main trading powers of the world. The strong development of China's foreign trade infuses a powerful driving force to the world economy. To certain extent, China economy is playing a role of engine to the world economy. However, in recent years, trade protectionism on the rise, for the evaluation of China's economy has taken a divide. The view that China economy takes a threat to the other countries turns more and more serious. China's foreign trade development uncertainty faces a new but uncertain international environment.The economic development of the overall population is seeking to raise the level of welfare, this is an important inspiration for this article, and provides a source of inspiration. Based on the expanded C-D model and the standard trade theory, the study reveals mechanism how foreign trade cause the change of host and home countries'the consumer welfare through mathematical and geometric analysis of the integration, and then uses empirical data to verify the above conclusions. Finally, with the analysis of above empirical results, the study gains a preliminary evaluation of China foreign trade, and then provides a reference to relative departments making up and adjusting foreign trade policy.The result of research suggest: on the one hand, from the aspect of static state, China's international trade has obvious advance effect to welfare level of European and US economy, while, due to the condition combined with competition and cooperation, the advance affects of China's international trade is not obvious; meantime, from the aspect of dynamic state, it appears more and more positive affects to trade partners'consumers'welfare. On the other hand, China's export and import shorten the consumption welfare gap of consumption between urban and rural residents to certain extent. In the east China and middle China, import improves the level of consumption welfare much more obviously, while in the west China, export is playing a more important role in this field. So relevant departments should adjust trade policy in line with local conditions, both adhering to the expansion of opening to the outside world, and promoting the structural optimization of regional trade, to confirm that foreign trade improve the consumers'welfare level of major trading partners and China's residents.