Study On The Influencing Factors Of Export Trade In Guangdong Province

Guangdong Province has formed an export-oriented economy in the process of rapid development. Although China is currently in a transitional stage of development and domestic demand will be the main driving force in the future economic development, for now, Guangdong Province still has a high external dependency and exports still have a great impact on economic development and employment. The economic crisis in 2008 posed impact on Guangdong export trade,which further affected the overall economic growth of Guangdong. Therefore, the study of the main factors influencing the export trade of Guangdong Province is conducive to find a new growth point for the export trade in Guangdong Province after the economic crisis.This paper extends the gravity model of trade and screens factors from both the demand and the supply aspects. Finally a static random-effects model is established based on panel data from 1995 to 2013. The conclusion shows that the external demand still plays a dominant role in Guangdong’s export. The trade partners’ level of economic development, the degree of economic freedom and REER of RMB are main factors that significant. As with the supply aspect, only the GDP per person in Guangdong province is significant. The affect of distance, import trade and regional trade cooperation organizations are also significant.Based on the conclusion, following suggestions are made: expand exports to emerging market economies and promote diversification of trade partners; improve risk consciousness; take prevention of foreign exchange risk and effectively manage foreign exchange reserves; reasonably guide the import and export trade; actively participate in international affairs to create favorable trade environment.