Dynamics Of International Trade Interests And Empirical Research

Economic gets considerably dynamic gains from trade of our country. That is to say, our country's foreign trade grows quickly and promotes economic growth strongly after our country's reform and opening. The essay reviews the theory's development of dynamic gains from international trade first. Then it analyses the empirical research of economists aimed at the dynamic trade from trade. So we can put forward that our country's international trade promotes economic growth through six linkages from 1978 to 2000. The linkages are macroeconomic policy quality, government size, price distortion, domestic investment, manufactures exports and foreign direct investment.The essay develops a new measure of our country's trade openness first. Then, it uses one model to investigate the relationship between the economic growth and six channels. It uses six models aimed at identifying the effects between trade openness and six channels respectively. The results of regressions suggest a strong positive impact of trade openness on economic growth of our country through five of six channels. Five channels are government size, price distortion, domestic investment, manufactures exports and FDI, with the manufactures exports for the biggest effect. But the macroeconomic policy quality of our country expresses a negative sign between the economic growth and international trade.We should increase technological content of exporting manufactures and promote efficiency of resource allocation to bring out the long-term, steady and continued economic growth.