A Study On The Influence Mechanism Of Jiangsu 's Foreign Trade Structure On Economic Growth

With the adjustment of economic structure,Jiangsu province,located in the center of the China’s east coast, has made obvious progress in the expansion of the economy and the improvement of economic efficiency since the reform and opening up in1978.Based on the related theories of economic growth and trade and the reality of Jiangsu province’s economic,this article will study that whether or not the promotions of growth has played roles in the process of the trade structure promoting the economic growth. So that we can have a further understanding of the trade situation of Jiangsu province and whether in some key aspects it has effectively played a positive role. And besides, we can also provide a certain direction of research in improving the level and quality of trade structure to promote economic growth.On the basis of theoretical analysis, we carefully analyze the status and the characteristics of economic growth and foreign trade structure in Jiangsu Province, in order to further understand the status and problems of the economic growth and foreign trade structure in Jiangsu Province. Specifically, we analyze the economic situation in Jiangsu Province first, mainly from the aspects of the total economy, industrial structure, consumption, investment, exports and regional economic development. And then, we analyze the foreign trade commodity structure, mode structure, model structure, market structure and Trade in services to analyze the current situation and characteristics of the structure of foreign trade in Jiangsu province. The overall development situation was well, and there was a certain and similarity trends, all these laid a good economic reality foundation for the research of this paper.Next, the article uses the unit root test, cointegration test,granger causality test and VAR model,uses the data about the on economy, trade, trade structure, the actual investment and labor force and so on from1993to2012,which is collected from Jiangsu statistical yearbooks and China Statistical Yearbooks Database, to explore the influence of the structure of foreign trade on economic growth in Jiangsu.Specifically, to analyze the way of capital accumulation,we use the historical data of Jiangsu province and use the existing research methods in the world to build an expanded Solow model by adding the goods trade to the traditional production function, approximate the depreciation rate with the index of the foreign trade structure to do the empirical analysis.We will divide the time from1993to2012into two periods,1993-2002and1993-1990to respectively analyze how the structure of foreign trade in the two periods promoted the economic growth of Jiangsu province by the way of capital accumulation.To analyze the way of improving total factor productivity,we will use the idea of Levin&Raut (1997) and the existing research methods for reference, construct the production function by connotating the trade and trade structure to the technical progress,and also divide the time from1993to2012into two periods to respectively analyze how the structure of foreign trade in the two periods promoted the economic growth of Jiangsu province by the way of improving total factor productivity.The results shows that: the influence of Jiangsu province’s foreign trade structure on economic growth is transforming from by the way of capital accumulation to the way of improving total factor productivity.Finally, we analyze and explain the empirical results, and further thinking about how to optimize the structure of foreign trade in Jiangsu Province for better promoting the economic growth of Jiangsu Province.