Study On The Impact Of Processing Trade To Economic Growth Of Shanghai

Over the past ten years, China's foreign trade growth rate is quite amazing, and now China has become the world's largest exporter overtaking Germany. Processing trade of China provide great impetus to foreign trade growth. China's export processing trade has accounted for more than half of total export amount since 1995, and becomes the main component of our country foreign trade. From the aspects of the international divisions, the development of the processing trade played an important role for our country's industrialization and open process. And it made an important contribution to promoting the overall economic and social development, to the industrialization advancement and industrial structure advancement, to attract foreign capital, technology development, and expanding employment. But, with the rapid development of the processing trade, its existing problems are also increasingly exposed, such as focused on labor-intensive industries, and low value-added products, unsubstantial domestic industries development, the poor environmental pollution and so on. The country began to adjust policies from 2007, and the processing trade upgrade starts to enter the essence stage.As one of the most developed areas of our country, with the advantages of the geographical position, Shanghai's processing trade has a rapid development. In 2010, the proportion of processing trade has reached 55.5%. It has an important meaning to Shanghai's economy and foreign trade. At present we have to speed up the upgrading of the industrial structure of the processing trade of Shanghai. In this context, further researches on the present situation of the processing trade and on its influence on economic growth has great significance. This paper uses the relationship of Shanghai's processing trade and economic growth as the research object, and analyses the effect of Shanghai's processing trade on economic growth and the mechanism. The main content includes the following several aspects:the first part:review the foreign and domestic research on processing trade and economic growth, then review the theoretical basis of processing trade, lastly, analyses the influence mechanism of processing trade to economic growth; the second part:analyses the current situation of Shanghai foreign trade and the processing trade's development process, then analyses the characteristics of processing trade through the number condition, trade method, the main bodies of investment, the structure of export products and market structure, then make an case analysis of the enterprises of electronic information industry; the third part:make the empirical analysis of Shanghai processing trade and economic growth. Firstly, make a general analysis according to the value added index, the rate of export dependence and the contribution degree and pulling degree of processing trade of Shanghai, then build up an Balassa-Feder model, analyses the relationship of the processing trade and the Shanghai's economic growth and the external economic benefit of processing trade, at last, analyses the mechanism of each effect. The fourth part:put forward countermeasures of transformation and upgrading of processing trade in shanghai according the empirical analysis results.The results show that:the processing trade of Shanghai can promote local economic growth, and processing trade import has more stimulative effect on Shanghai's economic growth than processing trade export. And the processing trade has not only a promoting effect on economic growth, even more important, they through the external economic effect, promote the development of the related department, thus promote the entire national economy growth. And promoting technological progress is the important path through which the processing trade promote shanghai's economic growth. But the processing trade still has problems such as high proportion of foreign capital, limited technology spillover, low industrial connection. Shanghai should speed up the upgrade of processing trade and play the role of external economic benefits.