Empirical Analysis Of China-ldcs Bilateral Trade Contribution To Its’ Economic Growth

China’s gross domestic product(GDP) overtook Japan’s in 2010 to become the world’s second biggest economy, after the United States. With the development of global economy, China, as the second biggest economy is called on to make some contributions to the common development of the world, especially to less developed countries(LDCs). Under the support and guidance of the United Nations, China has taken an active part in South-South Cooperation(SSC), helping the LDCs from economy, technology and foreign trade. China’s President Xi Jingping proposed a strategic vision of “the Silk Road Economic Belt” and “the 21st-Century Maritime Silk Road”(the Belt and Road, B&R) respectively during a visit to central Asia and Southeast Asia countries. B&R adhering to the principle of discussing, sharing, and building together, its’ purpose is to promote the common development and achieve common prosperity of the world. As we known, the common development of the wolrd need to focus on the development of the LDCs. Their development and prosperity depend on their economic growth, and foreign trade is one of the three carriages driving economic growth. Therefore analyzing of China-LDCs bilateral trade contributions to its’ economic growth means a lot.In this paper, we chose India, Vietnam, Bangladesh and Cambodia, Asian four LDCs as an example, to study China-LDCs bilateral trade contributions to its’ economic growth. Combined with the theoretical analysis, quantitative analysis and empirical analysis, we analyzed exports(EX), imports(IM), total exports and imports(T) of bilateral trade contributions to its’ economic growth of the four LDCs respectively. In quantitative analysis part, we mainly analyzed from foreign trade dependency degree, foreign trade contribution rate and foreign trade pulling defree of the four LDCs. In empirial analysis part, we first make a preliminary test on time-series data of the four LDCs by Econometric method, including correlation test, stationarity test, cointegration test and causality test. Secondly, we got the specific foreign trade contribution rate of China-LDCs bilateral trade(EX, IM, and T) respectively by variance decomposition. And then we setted three models of each country based on export expansion type of the total production function(Balassa, 1978), and found trade elasticity of the four LDCs by OLS regression.Quantitative analysis results show that whether the four LDCs’ foreign trade dependency degree of the world or China-LDCs bilateral trade dependency degree showed a trend of rising year by year, which means the influence of the foreign trade on LDCs economic growth keeps increasing. Empirical analysis results show that the trade elasticity is positive, China-LDCs bilateral trade really can promote its’ economic growth, and the four LDCs have a big trade contribution rate, especially the import contribution rate is much greater than the export contribution rate. LDCs’ imports from China is the main driving force of economic growth at present.