The Impact Of Trade Liberlization On Economic Growth

Nearly 30years has been passed since China conducted the opening-up policy, the development of China during this period demonstrates that foreign trade has significant impact on China's economic growth. Especially after China entered WTO, the progress of the trade liberalization has been fasten very quickly, the import and export of China has grown by a great amount. During the same time, China's GDP growth rate remained a very high speed. More and more researchers has transferred their interest to the research of the relation between trade liberalization and economic growth , however the research using the provinces data remains respectively rare, because of this, this paper does the research from this point of view.The model of this paper is made on the basis of the function of Cobb-Douglas, taking in the FDI degree of dependency, we do the research using the data of 30 different provinces from the year 1994-2007, and found that: 1. capital storage quantity did the greatest contribution to the economic growth; 2.the labor force was the second largest factor of the economic growth; 3.on the output scale, capital storage quantity and the labor force decreased progressively in scale during the researching period; 4.the contribution of trade degree of dependency to the economic growth acted as a upside down "U",5.so as to 2007, foreign capital did not have the technology output effect, which demonstrates that we can improve our economic growth only by independent innovation. On the basis of empirical research, we give our respective advices.