An Empirical Study On The Relationship Between China's Food Trade And Economic Growth In Food Industry

The study is focused on the relationship between food trade and Economic Growth in food industry in China. First, we review some theories of foreign trade promoting economic growth, which is considered as theoretical basis of studying the paper. Then, we introduce the general situation about the food trade and the food industry since the reform and opening-up of China .On the basis of these, it make an Empirical Study on the relationship between trade and Economic Growth in food industry by using a mass of data: by using Co-integration model to analyze the relationship between the export and import of food and economic growth of food industry; by using Feder model to find out an indirect enhancive function to the growth of its food industry through externality effects on other sectors; by using Panel Data model to compare the extent of the influence on the local food industry. Finally, it presents some suggestions to improve international trade's positive influences on economic growth of food industry in China from the government and the foodstuff corporation aspects.It is found that there exists a long term co-integration and short dynamic adjusting mechanism among the above three,our food import and export both improve the economic growth of food industry, but the improvement is tiny, we increase 1% on food export, just make 0.289% growth on food industry, while increasing 1% on food import can only make 0.171% growth on food industry.Feder model tells us that the export sectors has strong externality effects on other sectors,which tells us the reason why food export can promote the food industry .And, we get the externality effects parameter by the correctional Feder model. If food export increase 1% ,the output on other food industry sectors will increase 1.164%.the marginal element productivity is 0.15 higher than other sectors, so we should encourage food export,make more an more farm products firstly being processed by the foodstuff corporation before export, in order to enhance the additive value.The result of Panel Data model indicates that the influence by food international trade on local economic growth in food industry is so different among the Chinese province, we can simply divide into four groups on the basis of its influence extent. Tientsin, Guangdong are in the groupⅠ; some littoral regions like Shandong and some big agricultural province like Henan belong to the groupⅡ;Shanxi, Beijing and Hainan fall into the groupⅢ,while Shangxi, Neimenggu, Jiangxi,Guizhou and Xinjiang belong to the groupⅣ.Policies are suggested based on the above conclusions. First, the government should strengthen the investments from domestic capital, broaden credit policy and reduce revenue. Second, exports of labor intensive products such as aquatic products, vegetable and fruit products should be expanded, and the technique code system as well as the food safety system should be established to strengthen the inspection of food export. On the other hand, focusing on food imports, some actions should also be taken to accelerate the reform of customs duties, upgrade the food industry structure and increase the whole economic efficiency.