Research On Relationship Between Logistics And Foreign Trade

Since reformed and been opening up for30years, China’s foreign trade hasflourished. Especially after China’s entry into the WTO, trade volume increasedsharply than past few years. At the same time, the development of foreign trade alsocontributed to the growth of domestic logistics industry. Many regions have increasedinvestment into the logistics industry. As the developed coastal areas, the speed ofJiangSu province economic growth is among the best candidates. The trade volume isincreasing year by year, but there are many problems in matching logistics industrydevelopment, such as incomplete logistics facilities, low penetration of logisticsinformation. These problems restrict the economic development of JiangSu province,this paper takes it as the breakthrough point and analysis the relationship betweenlogistics and foreign trade in JiangSu province, then give out policy suggestions.First of all, the paper reviews the articles about foreign trade and logistics theorydevelopment and researches on the relationship between them. It takes the shortagesof the articles as the paper’s entry point. Then the paper does analysis from logisticsand foreign trade partly and deduces its affection route. And it comes to a result thatreducing the logistics’ cost and improving the logistics’ speed can improve the foreigntrade development. On the other side, the development of foreign trade is good forlogistics’ development.Secondly, the paper analyses the conditions of logistics and foreign trade inJiangSu province and finds out its problems. Then it chooses freight turnover and portthroughput as the explanatory variable, total volume as the explained variable to do the empirical analysis. The result displays that they have promoted each other in theeconomic development.Finally, the paper gives out the policy suggestions based on the rhetorical andempirical conclusion.