Influnce Of China Economy Growth Effect On Terms Of Trade

Terms of trade has been one of the important subjects of modern economics study in the field of international trade research. Based on the number and sum data of main export and imports products from "China Statistical Yearbook" from 1990 to 2008, we calculated the Net Barter Terms of Trade and Income Terms of Trade in 19 years, and based on China and its main trade partners labor productivity and factor productivity Statistical data, we calculated the Single Factoral Terms of Trade and Double Factoral Terms of Trade. Through analysis on the calculating results we find between 1990 and 2008 Net Barter Terms of Trade deteriorating in the long term; Income Terms of Trade has been rising all these years, and it has risen with greater extent since China joined WTO in 2001; Single Factoral Terms of Trade and Double Factoral Terms of Trade rise in the fluctuation, and Single Factoral Terms of Trade rises a bigger margin than Double Factoral Terms of Trade.We got the mostly consistent conclusion through summarizing literatures of China terms of trade demonstration research:the impact of economic growth on Terms of Trade is not clear. Actually, though economic growth dose not influence on Terms of Trade directly, it effects on terms of trade indirectly through technology progress effect, capital accumulation effect and labor supply effect. Therefore, this paper researches the effect of economic growth on terms of trade from 3 effects of economic growth, it is found that abundant labor supply more or less restricts improve of various terms of trades, but factor productivity and capital accumulation show positive relationship with terms of trade.There are 5 chapters in this paper:Chapter 1 is introduction. It introduces research background of the paper, investigates theory meaning and practical significance of this subject, summarizes relative literatures, and points out its possible innovation part; Chapter 2 is the basic theoretical part. Firstly we define the concept of economic growth effect, and then we analyze the impact of economic growth technology progress effect, capital accumulation effect and labor supply effect on terms of trade; Chapter 3 is demonstration analysis of Net Barter Terms of Trade, Income Terms of Trade and Factoral Terms of Trade within 19 years changed conditions; Chapter 4 is evaluation of 3 economic growth effects with fixed capital stock, employment amount and technology progress rate from factor inputs and technology progress angle, and reviewing the impact of economic growth on terms of trade; Chapter 5 is thought and enlightenment about China terms of trade improvement.