The Empirical Study Of Relationship Between Foreign Trade And Economy Growth In Hunan

With the development of global economic integration, the influence of foreign trade on economic growth increases deeply, and the international trade is showing a free tren. In those countries with fast growth of the economy, the global economic growth has proved the important fact that international trade has almost played the role of "Engine"for the economic growth. The relationship between foreign trade and economic growth is complicated, which even differs among the different regions of a country or the different develop stages in the same region. Scholars in the world have made limited study on the relationship between regional foreign trade and economic grouth. And they have mainly focused on the analysis on the relationship between China's holistic foreign trade and economic growth. While because of the distance of regional economic growth and foreign trade among regions of China, the rate of economic growth and foreign trade in different regions does not correspond to the national's. Because the central region of China only covers a small part in the foreign trade and foreign capital intake, enlarging the opening will be the essential approach to the rise of this region. Central region, the crucial strategic hinge of China, plays an important part in the national arrangement. Although foreign trade has largely restrict the economic growth and rise of Hunan, it also indicates that it has a tremendous space for foreign trade, and especially under the strategic policy proposed by the central government, Hunan will face new opportunities in foreign trade. Hunan is not only a big economic but also a powerful trade province. Based on Hunan, the study on relationship between foreign trade and economic growth has important theoretical value and practical significance.In this paper talks about the relationship on how foreign trade can make Hunan a big economic province. It solely concentrates on the import and export total amount, and its relationship with GDP growth, and then considers wholely about the relationship between import & export total propose and GDP growth. This paper starts on Hunan's foreign trade and ends with how to increase the economy, and it firstly reviews the related theories about foreign trade and economic growth and then it illustrates the thoeries about the theory of barriers to trade,compromise of trade theory and at last makes a conclusion about all scholers's study about this topic.Based on above theories, the author analyzes how foreign trade works efficiently on economic growth so that this paper can provide theoretical basis for analyzing the relationship between foreign trade and economic growth of Hunan. According to the foreign trade from 1987 to 2008 and GDP datas of Hunan, the author inspects the relationship between foreign trade and economic growth of Hunan with the technique of co integration test and Granger causality in the third chapter, and then makes the following conclusion:The relationship between foreign trade and economic growth is stable and steady, and there is only one-way cause and effect relationship between them. In chapter four, in the impact of financial crisis, the author has discussed the opportunities and challenges of developing foreign trade of Hunan, and has stated the corresponding policies and suggestions for those problems.