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

Since China's reform and opening up to the outside world, China's economy has been enjoying rapid growth, and the active role that the foreign trade is playing in the economic development can not be neglected. With the economic globalization, any country in the world can not become strong in a closed-door environment as the impact that foreign trade has on economic growth is becoming bigger and bigger. There have been lots of researches on the relationship between foreign and economic growth, most of which focus a lot on the influence that export and import trade has had on the overall growth of GDP.This text analyzes the relationship between foreign trade and economic growth from both theoretical and practical points, taking Jiangsu Province for example. After an overall introduction of the current situation of Jiangsu's foreign trade and economic development, the writer carries out qualitative analysis and quantitative analysis of the relationship between foreign trade and economic growth. The qualitative analysis focuses on the relationship between foreign trade and economic growth from three points of view. There are three parts of quantitative analysis, with the help of OLS and Cointegration Analysis, the writer first analyzes the relations between foreign trade, export, import and economic growth, using National Income Identity; the writer then divides GDP into three industries' GDP and analyzes the relations between export, import and economic growth respectively; finally the writer designs a model on the basis of Cobb-Douglas Production Function to measure the contribution that the foreign trade of primary products, mechanical and electrical products and hi-tech products has made to Jiangsu's economic growth.According to the qualitative analysis and quantitative analysis, there goes following conclusion: first, in the long term, export, import and net export all can promote the development of Jiangsu's economy while in the short term only export can plays an active role; second, import can promote the growth of The First Industry and both export and import can promote the growth of The Second and Third Industry; finally, the export of the three major products all promote the economic growth through the improvement of TFP. The improvement of TFP of the primary products promotes the development of the first industry and that of mechanical and electrical products and hi-tech products contribute to the growth of the second industry while the import of hi-tech products advances the development of the third industry.At the end of the paper, on the basis of the conclusions related, the writer proposes their relevant policy and suggestions against the expansion of export, the optimization of the commodity structure of foreign trade, the promotion of improvement of industry structure and the increase of TFP.