Commodity Structure Of Import Trade And Economic Growth

Since the reform and opening up, China’s foreign trade has been developing rapidly,However, the continuous double surplus has brought a lot of problems and challenges. The State Council promulgated the guidance on strengthening the import to promote the balanced development of foreign trade on April30,2012. Therefore this thesis has a certain practical significance.In addition to the literature review, there are three main parts. The conduction mechanism analysis offered concrete analysis of how import trade can promote economic growth through increased factor inputs, technological progress and the upgrading of industrial structure. The second part analyzed the overview of the development and policy of the import trade, and the characteristics and drawbacks of commodity structure of import in detail. Empirical analyses were carried out from three perspectives, namely the growth of GDP. technological progress and the upgrading of industrial structure. The objects of empirical analyses were the overall import, import of primary products, industrial goods and the10categories of goods based on SITC respectively.The following conclusions were drawn from the empirical analysis based on the data of China from1980to2011. Firstly, import trade can effectively promote economic growth and the effect of primary products is better than that of industrial products. Among primary products, the effect of SITC3commodity is the most prominent, while SITC2commodity and S1TC4commodity have no significant effect on economic growth. In industrial products, the effect on economic growth of SITC8commodity is relatively more prominent. However SITC6commodity hinders the economic growth. Secondly, import trade can boost technological progress and the effect of industrial product is better than that of primary products. Meanwhile, the effect on technological progress of SITC6commodity is the most prominent, which is even obvious than that of techno logy-intensive and capital-intensive SITC5commodity and SITC7commodity. Thirdly, import trade can lead to the upgrading of industrial structure. The industrial is playing a significant role to promote the upgrading of the industrial structure, while primary products have no significant effect on It.The innovation here was that this thesis explored the relationships between the10categories under SITC and extensive and intensive economic growth respectively, due to which policy recommendations to optimize the commodity structure of import were put forward.