Impact Mechanism Of Export Trade Structure On The Economic Growth

Since the 1980's, with the deepening of Reform and opening up, China's foreign trade has made considerable progress. Labor-intensive, low-grade products have been the main body of the structure of export trade in China as it is a labor-abundant country. However, a country can only get short-term, static benefits from the trade in accordance with the traditional theory of comparative advantage in international trade, which will gradually lose in the long term. Therefore, it is particularly necessary that we study the impact mechanism of export trade structure on economic growth and the influencing factors, change the existing trade structure to finally get the dynamic trading profits in according with economic development stage.This paper studies the impact mechanism of export structure on economic growth and the influencing factors. First, expand Feder (1982) model and use inter-provincial panel data to conduct empirical analysis. The conclusion indicates that although spillover effect of export manufactured goods is not significant, the productivity effect is comparatively significant. However the spillover effect and the productivity effect of export primary products are negative. These conform to the practical requirements of industrial structure upgrading and the change of export structure in China. Second, based on above empirical results, we use Chow stability test to testify the influencing factors. We find out three influencing factors which are human capital, FDI and economy openness. Finally, based on the conclusion of the study, we give some suggestions such as improving the internal structure of manufactured goods, increasing the education investment, raising the level of utilization of foreign capital and enhancing regional economic openness.