Analysis Of The Effects Of The Import Trade On China's Economic Growth

Since the Reform and Open-up,foreign trade in China has increased rapidly.China has grown up into the biggest country of the goods trade in the world from a relatively closed economy.However,because the Chinese foreign trade policy has been biasing the export for a long time,sparing less attention in the import,the imbalance of the import and export has happened in the long run.Just for this case,China has been enduring the foreign trade friction and conflicts from the developed countries.As a matter of fact,the contribution and the influence the import has made for the economy increase should not be neglected.The import could boost the economy increase via the production factors and TFP.Import would increase the domestic production supply and improve the TFP via the technology emission of the intermediate goods.So the study of the importance of the import to economy increase makes much sense economically as nowadays the international trading protection pops up again and China will surely face more trading friction.Firstly,this paper will list the theory for the import and export growth generally and explain the import trade could promote the economic development theoretically.Next,it will analyze the promotion mechanism and explain how the import could promote economic development.The overall import situation will be described via total import value,import elasticity,import reliability,import contribution rate,commodity structure,trade pattern,the subject of trade.During the empirical analysis,it will use statistical analysis technique such as unit root test,cointegration test,Error correction,Granger causuality test and panel data to analyze the effect that the import commodity structure and the import regional distribution has made to the economic development.Lastly,it will discuss the existing issue and present some proposals based on the empirical analysis and thee actual situation of our domestic import.