Foreign Trade On Economic Growth In Jiangsu Province And Countermeasures Analysis

With the globalization of world economy, the international trade tends to be liberalized day by day. Under the condition of integration of trade and investment, foreign elements have become important measures to develop a nation's (region) economy and improve habitants' welfare. Since the reform and open to exterior, Jiangsu province has given play to its geographic advantages, introduced large amounts of foreign capitals, and developed greatly the foreign trade. Its trade scale having rapidly expended and its foreign trade competence having remarkably increased, Jiangsu province has exerted important and irreplaceable effect to make full use of foreign and local markets and resources, widen the economic development space and propel the continuous and rapid economic growth. In such a special environment and condition, to explore the influence of foreign trade on the economic growth, to analyze and compare the systems and ways how foreign trade has stimulated the economic growth in different periods, can help us to identify the important place of foreign trade in Jiangsu province's economic growth, and provide theoretical and practical basis for the reform and establishment of foreign trade policy.Based on the thorough analysis and application of the systems and ways of foreign trade's influence on economic growth, this research has analyzed the degree of how foreign trade has contributed to and influenced Jiangsu province's economic growth from the two angles of both demand and supply. Firstly, from the angle of demand, use modified methods to measure how foreign trade has driven the economic growth of Jiangsu; secondly, employ the linear regression of statistics to analyze the relations between foreign trade and the economic growth; thirdly, based on the previous analysis, from the angle of supply, use improved FEDER model to focus on the characteristics and influence extent of foreign trade's promotion on economic growth; and finally, bring forward some policy suggestions according to the results of the research and analysis on real cases.From the sequential contribution and pull effect of import and export to economic growth, we can see that foreign trade has evident promoting role to economic growth. Since 2000, this tendency seems more and more evident. From the average number, the import and export have explained 30% of economic growth, promoting economic growth at 5% on the average. From the nationwide situation, foreign trade has promoted only 1.5% of economic growth, which means foreign trade's influence on economic growth is greater than the countrywide level.In about 1994, great changes have taken place in the exterior environment of Jiangsu province: from supply-oriented economy to demand-oriented economy. From the research we have found that export's stimulative effect to economic growth is widely divergent under different economic conditions, i.e., foreign trade has obvious time effect on economic growth of Jiangsu province. Further on, by use of FEDER model, the research has analyzed the effect of foreign trade on Jiangsu province's economic growth from the angle of supply, and this effect contributes more to economic growth under the demand-oriented economy. By the comparison with national average level, we have found that the integral foreign trade hasn't very evident promoting effect on economy. At present, it seems that China's economic growth is driven by the increase of investment. Therefore, to realize the growth and rapid advance of Jiangsu's economy by developing foreign trade has a more substantial meaning to Jiangsu province.In the end, on the basis of the conclusion drawn from demonstrations analysis, in order to accelerate the economic growth of Jiangsu province, the author has proposed some policies such as promotion of the development of Jiangsu province's export trade, appropriate increase of import of capital goods and advance of adjustment of trade structure.