Research On China's Foreign Trade To Regional Differences In The Impact Of Economic Disparities

Since the reform and opening, the problem of regional economic disparities hasbecome prominent increasingly as a result of multiple factors, and as an engine ofeconomic growth, the "import and export trade" in the area also presents the statusand trends of serious unbalanced development. In this particular background, thispaper attempts to study its impact on regional economic disparities arising from theperspective of regional differences in the development of China’s foreign trade.Based on retrospection and summary on the related research conducted at homeand abroad, this paper reviews the existing research literature from the two aspects ofthe research content and the research methods, this establishes the theoreticalfoundation for the study of this paper and pointed out the breakthrough point of thispaper. Then this paper describes and analyzes the status of foreign trade differencesand economic disparities in detail between Chinese provinces (autonomous regionsand municipalities), between eastern, central and western three areas inside, andbetween the three regions since the reform and opening，the paper also analyzes thecorrelation between foreign trade differences and economic disparities preliminary,the paper finds that China’s foreign trade development and economic growth haveshown a relatively strong regional non-equilibrium since the reform and opening, andalso finds that the change trend of both is almost synchronization since the1990s.Based on the theoretical foundation and analysis on the status quo, this paperconducts the empirical test on the issue that regional differences of China’s foreigntrade development influences on the regional economic disparities, and the empiricaltest mainly from the following two aspects: on the one hand, the paper researches theissue that regional differences of China’s foreign trade development influences on theregional economic disparities by using dynamic econometric analysis method basedon Vector auto regression model from the perspective of provinces (autonomousregions and municipalities) level differences: The results of cointegration test and VECM model show that there is a unique long-run equilibrium relationship betweenregional differences of foreign trade development and the regional economicdisparities, and there is a reverse revision mechanism in the relation. By analyzing thegranger causality test and impulse response, the paper further finds that both importtrade development differences and export trade development differences have asignificant impact on the expansion of regional economic disparities, and the positiveimpact of the former is greater than the latter；the expansion of regional economicdisparities has a significant impact on the expansion of export trade developmentdifferences, but regional economic disparities has no significant influence on importtrade development differences. Variance decomposition results demonstrate the aboveconclusions from the data, which shows the reliability of the conclusions. On the otherhand, the paper researches the issue that regional differences of China’s foreign tradedevelopment influences on the regional economic disparities by using extended Solowmodel from the perspective of regional differences, the results shows when the otherfactor’s impact on the regional Economic Growth is constant, regional differences inthe development of foreign trade causes the different economic growth rate from theperspective of dynamic, but this has a significant impact on the expansion of regionaleconomic disparities from the perspective of the static. Based on the above conclusion,we know that regional differences of foreign trade development is a key factor to theexpansion of regional economic disparities, Uneven development of the foreign tradein the region truly produces a significant role in promoting. the expansion of regionaleconomic disparities.On the basis of empirical conclusions, this paper analyzes the mechanism thatregional differences of foreign trade development influences on the regional economicdisparities, and mainly carries on the elaboration from five aspects: optimal allocationof resources and employment mechanism; factor accumulation mechanism;technological advances mechanism; system innovation mechanism and Industrialagglomeration mechanism. In the end, the paper seeks the policy implications that isconducive to the coordinated development of regional economy starting from theperspective of regional balanced development of foreign trade: promote the balanced development of export trade and import trade in the regions; strengthen openness andtrade between provinces (autonomous regions and municipalities); promote thecoordinated development of foreign trade between eastern, central and westernregions; enhance the competitiveness of foreign trade enterprises greatly in the centraland western areas.