The Research On How Foreign Trade Promotes China's Economic Development

Since reform and opening up in 1978,China has carried on the economic system reform,implemented open policy,and the trade and GDP of our country appears rapid growth.In the report of the 17^th CPC National Congress,the statement of "Economic development" indicates the change from "growth" to "development".Economic development,including economic growth,but economic growth has a wider meaning.To distinguish between economic growth and economic development are two different concepts,this paper,from the perspective of development economics,studies the relationship between foreign trade and economic development.To promote a country or a region's economic development is the most important function of international trade.The focus of this article is to study foreign trade promotion role in economic development.Economic development has a broader connotation,so this paper studies the ones which has the closest relationship to foreign trade in economic development,including economic growth,industrial structure,employment and environmental issues,which focus on economic growth and industrial structure. This paper utilizes the methods of combination in experimental analysis and theoretical analysis,qualitative analysis and quantitative analysis,data's illustration and graph's analysis,China's foreign trade's role in economic growth is an important academic issue.Domestic and foreign scholars have done a lot of research,and come to different conclusions.In the quantitative analysis,the cointegration analysis which is scientific and advanced in recent years is used to establish the experimental models of the trade improves the economic growth,with the data of China's imports and exports and GDP from 1980 to 2007.The cointegration analysis avoids spurious regression in unstationary time series.I also use the Granger test to validate the existence of a causal relationship between foreign trade and economic growth.,which makes the conclusion more reasonable and reliable.According to the qualitative analysis of China's foreign trade and industrial development,the paper comes to the conclusion that China's export expansion and optimization of the structure of export commodities continued to promote industrial structure optimization and urbanization.This article first on an analysis of the total foreign trade pulling effect on employment,and then focus on the analysis of processing trade play an important role in promoting quantity and quality of employment;The article analyzed respectively the impact of import trade and foreign direct investment on the China's environment,pointing out that the foreign trade has played an important positive role to China's environmental protection.Finally,according to the results of earlier empirical and theoretical analysis,this paper puts forward the corresponding policy recommendations in order to make sure that China's foreign trade truly play a lead role in the development of the national economy.