| Since China reformed and opened up in 1978, China’s foreign trade had gained rapid development. Import and export volume in just more than three decades turned hundred times. Especially after China joined the World Trade Organization. Chilians economy rapidly grew, and the development of foreign trade ushered in greater vitality. With the development of economic globalization, all countries are becoming more and more close. Foreign trade effects the development of the world economy. It has also become one of the important factors affecting the China’s economy. In the coordinated development of global economy which is changeable, foreign trade can bring the prosperity of a country, but it may also bring the poor growth. After the global financial crisis, each country’s economic development was subject to the different degree of damage. Their foreign trade development strategies had changed, and China’s development of foreign trade has also undergone a great change. In the new international division of labor,China’s industrial structure updated,and it’s economy entered a transition period. Along with the international economic recession, the US-led developed countries in order to protect their economies prompted industry trade protectionism again. The reduce of the foreign demand in developed countries forced China to upgrade it’s industrial structure and change the mode of economic growth from external demand to internal demand. In response to these negative initiatives, China actively explored the building of free trade area in recent years. Till now, it had signed free trade agreements with 10 countries, and set up Chinese(Shanghai) free trade area in 2013. Under such a background, is there some changes happened in the relationship between china^s foreign trade and economic growth? Based on this question, the paper, through theoretical and empirical analysis, re-examine the relationship between China’s foreign trade and economic growth again in the new situation.This paper is to study the relationship between China’s foreign trade and economic growlh. Firstly, it theoretically analyzes the relevant concept of foreign trade and economic growth,and briefly summarizes the previous studies of the economic relationship between the two. The article also summarizes the theories of W I O and free trade zone. It provides a theoretical basis for the analysis below.Secondly, the paper analyses the current situation of China’s foreign trade andeconomic growth. Found that since 1978, China’s foreign trade had developed at an alarming rate. Especially after the accession to the World Trade Organization, foreign trade showed a trend of rapid growth. Export and import increased from 35.5 billion yuan in 1978 to 25.8212 trillion yuan in 2013. Until the global financial crisis in 2008. the import and export volume fell sharply.Through the analysis of foreign commodity structure, it found that China mainly exported improvement trade. In recent years,China mainly exported capital-intensive products instead of resource-intensive products. The structure of the export commodities had reached a relatively better state. And it mainly imported industrial products with high tedinical content. China’s foreign trade regime had also undergone a great reform. At the same time, in this open environment, China^s economy, which realized the communication between country and country, had achieved greater growth. Since the 21 st century, China continued to upgrade the industrial structure. The first industry grew slowly, and the second industry maintained a high-speed and stable development. The third industry broken the single mode of development, gradually developed a new service industry, including modem logistics, finance, insurance, leasing business, scientific research and development. Along with the more open, China^ dependence on foreign trade had increased from 10% in 1978 to 45% in 2013. High dependence on foreign trade threatened the stable development of China’s economy. Through the competitiveness index analysis, we found that China5 s competitiveness index curve early was not stable, and the later was relatively stable, floating in 0. The competitiveness of product had been improved. China’s industry structure had optimized and upgraded. The technological content of export products and the competitiveness of trade had also improved.In the fourth chapter, we use China-related macroeconomic data from 1980 to 2013, taking China’s accession to the World Trade Organization and the free trade area construction as the time dividing point, to divide the time into two sections: Reform-WTO, WTO-Free Trade Area Construction. By means of Econometric Time Series mode!, we have data for the empirical analysis of the two time periods respectively. The purpose is to investigate the different role of foreign trade and economic growth in these two time periods and scientifically make the effect quantitative to compare. The empirical results show that there is a long-term stable and equilibrium relationship between the export, import and economic growth, however in different periods the relationship of the three is different. In Refomi-WTOstage, export promoted economic growth, while imports not. In WTO-Free Trade Area Construction stage, import promoted economic growth, while export not.Finally, Chapter Five summarizes Chapter Three and Four, and find that China’s foreign trade played a role in promoting economic growth. But in different periods the promoting effect is different. According to the conclusion, the article proposes the following policy recommendations to the development of China’s economy: Expand the degree of openness, and constantly improve the construction of Free Trade Area; accelerate economic transformation, and change the mode of economic growth; promote the new foreign trade structure, and improve the international competitiveness of products. The innovation of this paper is based on the division of time,and divides into two periods to compare the two different effects of foreign trade on economic growth. The shortage is that the research and analysis is not deep enough, and the direct or indirect effects of China’s foreign trade on economic growth in different periods need further study. |
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