The Contribution Of Foreign Trade To Economic Growth In Guangdong Province

Since China’s Reform and Opening up, Guangdong Province has always been China’s major foreign trade province, the amount of Guangdong’s foreign trade has gained rapid growth, the quality was also improved. So foreign trade is playing an increasingly important role in economic growth; But with the change of economy development and the International economic environment, foreign trade is faced with the pressure of upgrading. How to make the foreign trade in Guangdong play a more important role in economic transition, to explain the affection of the foreign trade’s mechanism to promote economic development systematically,and it’s urge to test the contribution of foreign trade to economic growth in empirical research.This paper used the theory of International Economics,Development Economics and other relevant method and theory to study the contribution of foreign trade,this researchfound that foreign trade can optimize resource allocation,promote specialization of work,gain technical progress,realize economies mechanism,and described the condition of foreign trade in Guangdong Province from 1978-2014 and the economic character in the meantime,and demonstrated the contribution of foreign trade and the degree of dependence.And built econometric model on the base of qualitative and quantitative analysis.Through Granger Causality Test and linear regression to demonstrate the contribution of foreign trade of Guangdong to economic growth.Through theoretical and empirical analysis, the following results:(1),the development of Guangdong’s foreign trade has proceeding-phase characteristic and stays growing tendency in all.The proceeding-phase characteristic is all because of the national policy,and the economic system and the fluctuation of international market price,and technical progress also contributes to the upgrading of foreign trade structure. Although in some years,the foreign trade was recession,the whole tendency of foreign trade is still on rising.(2),the foreign trade structure is optimizing,on the aspects of foreign trade structure,the scale of processing trade is shrinking,and the scale of general trade is increasing that demonstrates the industrial is transferring and upgrading,the adding value of foreign trade is also increasing.(3),foreign trade has a well function to promote economic growth.After my calculation,i found that foreign trade makes a great contribution to economic growth.Although foreign trade suffered a lot in 2008,the degree of foreign trade’s contribution and pulling was still maintained 8.93% and 1.39%;the degree of Guangdong’s economic dependency is 97.5% in 2014,all of this data demonstrate opening degree of Guangdong Province. After the analysis of econometric model, we found that both import and export can induce economic growth,and export can also affect import.