The Research Of Processing Trade On China’s Economic Growth

30 years of reform and opening up, China’s economy has achieved unprecedented success, the development of foreign trade is at an alarming rate. This article thinks that the processing trade is one of the main foreign trade modes, which takes an indispensable role to the rapid growth of the national economy, therefore uses the new angle and the method launches the deep research to the processing trade to the economic growth influence is really essential.This article reviews the study of Chinese and foreign scholars on processing trade and economic growth, and first to collate and summarize the general situation of China are processing trade. Then, it analysis the influence mechanism of processing trade on economic growth. It thinks that this kind of influence mechanism mainly may induce five aspect effects, including capital cumulative effect, technical overflow effect, upgrading of industries effect, effects of employment and institutional innovations effect.Based on the theoretical analysis, the article estimates on relevant data, obtained China’s processing trade contributed to economic growth rate and degree of driving ,and using Eviews software to measure the relationship between processing trade export, export of general trade and economic growth, empirical results show that processing trade export and economic growth have long-term positive correlation, processing trade and general trade exports are Granger cause of GDP, they are both important for economic growth.Then, this article uses the mediator effect test procedure to get employment, the technical overflow, the upgrading of industries to take the intermediary variable to confirm the processing trade once more to the economic growth influence function. The conclusion indicated: The processing trade can promote the economic growth, the employment, the technical overflow, the upgrading of industries respectively are three intermediary variables of processing trade influence on economic growth. And, the processing trade promotes the economic growth through the upgrading of industries to be most remarkable, this accounts for the processing trade products outlet proportion with the high-tech product export to enhance unceasingly, processing trade’s product mix obtains the optimization to have the very big relations, the processing trade employment and the technical overflow effect also obtains the affirmation. Finally, put forward countermeasures and suggestions of how to optimize the development of processing trade to further promote economic growth.