A Research On The Effect Of Mechanical And Electrical Products Exporting On Economic Growth Of Anhui Province

In recent years, with the economic growth of Anhui province, mechanical and electrical products exporting has developed rapidly, which have ranked first in all the exporting products in Anhui province. The mechanical and electrical products, the development of which often represent the strength of the industry development of a country and a district, are most capital-intensive and labor-intensive products, with high additional value, rapid development pace, and strong leading role. So this thesis researches on the effect of the mechanical and electrical products exporting on economic growth of Anhui province from a provincial angle.This thesis first introduces the export overview of mechanical and electrical products in Anhui province. The analysis reveals that mechanical and electrical products exporting in Anhui province shows some good features, such as rapid export growth, diverse export markets and so on. But at the same time, compared with other domestic mechanical and electrical products exporting provinces(such as Guangdong, Jiangsu and Zhejiang), the mechanical and electrical products exporting in Anhui province still has some disadvantages, such as low export competitiveness, low technology, low additional values and so on.This thesis lays emphasis on the empirical analysis of the effect of the mechanical and electrical products exporting on economic growth in Anhui province. That the mechanical and electrical products exporting promotes economic growth by means of scale economy effect, industrial assembling effect and competitive effect is first analyzed; then co-integration analysis is made, concluding that the former bears a long-term dynamic and balanced relation with the latter; and then in the light of Granger’s theory of causation, a test is made, showing that the former promotes the latter, but the latter does not promote the former; further, simultaneous equations model is used to estimate the direct effect of mechanical and electrical products exporting and the indirect effect of mechanical and electrical products exporting through consumption, investment and import on economic growth. We can draw a conclusion that the exporting leads to economic growth in Anhui province. But from the figure, we can see, mechanical and electrical products exporting didn’t contribute a lot to economic growth. And a brief analysis of the factors, which affects the contribution of mechanical and electrical products exporting to economic growth,is made.In the final, this paper gives some suggestions on how to enhance the promoting effect from three levels, that is the government, industry associations and enterprises. The government should increase economic policies to support mechanical and electrical products exporting enterprises, introduce foreign investment positively and do good service to these enterprises. Industry associations need play their own roles well, and do good coordination, consultation and service to these enterprises. Enterprises themselves should be engaged in innovation, pay much attention to the brand building and respond actively to trade frictions.