Research On The Relationship Of FDI?Foreign Trade And Economic Growth In Shanxi Province

Under the background of economic globalization,foreign trade and FDI play a more and more important role in the development of economy in one country or region,present a trend of liberalization and globalization.The quality of development of foreign economic becomes the key to a country or regional economic promotes its competitiveness,especially for developing countries or regions.so,the research about the relationship between FDI ?foreign trade and economic growth is valueable.At present,foreign trade and FDI boom across the country,while in Shanxi,the strength of absorbing FDI and the development of foreign trade is strong in recent years,so this article foothold in Shanxi Province,researching the relationship between FDI?foreign trade and economic has a widely significance to Shanxi and other developing regions.Aiming at researching the relationship between development of foreign trade? FDI and economic growth in Shanxi Province,this paper uses the gap of foreign exchange and saving gap model? the exogenous growth model? absolute cost said? comparative cost trade theory?H-O theory?the ministry of foreign trade multiplier theory?Mundell alternative investment and trade theory?island investment and trade complementary theory,and uses the method of qualitative analysis to analyse the current situation? structure characteristics of FDI?foreign trade and the economic growth in Shanxi Province in detail,additionaly,combined with the empirical analysis,the paper has also research the relationship of FDI?foreign trade and economic growth in Shanxi Province.Results of the research show that in Shanxi,at the macro level,economic growth is the granger cause of FDI,foreign trade is a granger cause of economic growth,FDI is the granger cause of foreign trade,but relationship between the effect of FDI on economic growth and the effect of economic growth on foreign trade can only be achieved under the condition of long time;Directioning from the microcosmic point of view,considering the effcte size of the influence of FDI to economic growth,Shuozhou is the largest one,and Datong,Linfen,Jinzhong,Yangquan is the second;considering the effcte size of the influence of foreign trade to economic growth,Xinzhou and Taiyuan are the largest,and Jincheng,Changzhi is the second.Finally,on the basis of qualitative analysis and quantitative analysis,putting forward 5 suggestions for reference to the development of foreign trade in Shanxi,and those suggestions will provide a certain scientific basis for the sustainable development of foreign economic in Shanxi.