Empirical Analysis Of Foreign Trade And Economic Growth In China

The increased of ecomomic globalization enhances the importance of foreign trade on economy. Since the reform and opening of China, foreign trade and economy are increased rapidly year by year. So the relationship between foreign trade and ecnomic growth is drawing more and more attention.In this paper we mainly investigate the affect of foreign trade on ecnimical growth in China. Applying the methods of combination in qualitative analysis and quantitative analysis, data's illustration and graph's analysis, the paper makes a systematic study on the relation of foreign trade and economic growth of our country. First, this paper starts with the main theories of foreign trade and economic growth. Then it carries on quantitative analysis of the long-term and short-term relation of China's foreign trade and economic growth. We use cointegration test and error correction model to analyze the relation of Chinese import-export of goods and GDP. On the basis of these, we use the same quantitative analysis to explain the ralation of China's foreign trade and economic growth in the way of foreign trade style and foreign trade structure .In the end, it puts forward corresponding policy and suggestion on how to accelerate our country's forergn trade promoting economic growth.