The Study On The Foreign Trade's Influence On Economic Growth Of Jiangsu Province

With the economic globalization and regional economic integration,the influence of foreign trade on economic growth is playing an increasingly important role.At the same time,The study of foreign trade's influence on economic growth has also become a focus of academic theory.China has a vast territory and the level of the economic development is different among the provinces.In a concrete area,for its economy and policy condition is relatively stable,the study of foreign trade's influence on economic growth will be more suitable to the fact and the conclusion will be more beneficial to provide the reliable basis for regional economic development.In this paper,Jiangsu Province is chosen as the studying subject for exploring the influence of foreign trade on economic growth.The conclision will help us identify the role of Jiangsu'foreign trade in its economic growth and provide the theory and practice Basis for trade policies reforms and related trade policies establishments.The paper first summarizes foreign trade and economic growth from the perspective of theory and respectively narrates the meanings,influencing factors,the main theory and the relationships.Secondly,the paper introduces of the situations of foreign trade development and economic growth in Jiangsu province.Firstly, economic growth is respectively described from the views of totality and per capita. Then,it narrates foreign trade development in Jiangsu province by analyzing the size of foreign trade,commodity structure,trade,market structure,and the pattern of foreign trade.What's more,economic growths and foreign trade developments of three major regions in Jiangsu Province are comparatively analyzed.Then the paper analyzes the influence of foreign trade on Jiangsu Province's economic growth.The situation of the whole province is described by using cointegration analysis and testing Granger Causality to the data of Jiangsu Province from 1985 to 2007.Through the positive analysis,the conclusion is that the export growth and the import growth in Jiangsu Province have played significant roles in the promotion of economic growth. And compared to the growth of import,the importance of the growth of export in promotion of economic growth is less than.Since then,this paper uses a neoclassical growth accounting equation including the trade factor to estimate the contributions of the capital growth,the labor force growth,and import and export growth.The data of the three regions from 2000 to 2007 is used in the analysis.As a result,it is found that foreign trade Development is one of the main factors,which have high economic growth rate in the south of Jiangsu province.And it is also found that the contributions of the foreign trade to the economic growth are both significant in the middle and north of Jiangsu province.But the contributions of the foreign trade in tow regions are not more remarkable than south of Jiangsu.The results show that the developmental imbalance of foreign trade in the different regions indeed caused the imbalance of economic development.This situation should not be ignored.Finally,on the basis of the analysis before,the paper puts forward some advice about expanding the scale of export for export trade promotion,increasing the imports of capital goods and advanced technology,adjusting trade structure and upgrading industrial structure, and promoting the coordinated development of foreign trade of the three major regions,which will be able to improve effect of foreign trade to economic growth in Jiangsu Province.The final chapter is about the conclusion of this paper and the outlook for further study.