Research On The Relationship Between FDI And Foreign Trade To Economic Growth In Xinjiang

As an important parameter of foreign trade,foreign direct investment(FDI)is also a medium for promoting economic growth.The impact of FDI and foreign trade on economic growth is one of the hot research issues in the current foreign trade environment and economic growth.The implementation of the “Belt and Road” initiative has brought great opportunities for deepening trade between Xinjiang and Central Asia and neighboring countries along the route.FDI and foreign trade have also played an increasingly significant role in economic growth.With the rapid expansion of the export-oriented economy and the gradual expansion of foreign trade,the introduction of FDI is particularly important.Therefore,maintaining stable foreign investment and introducing relevant policies and various preferential measures to achieve the FDI and foreign trade gap is the goal.As an important mode of operation of foreign trade,FDI can not only increase capital accumulation,accelerate technological upgrading,inject new impetus into economic growth,but also optimize the adjustment of foreign trade structure,accelerate economic growth and economic operation mode.The sustainable new development of FDI has certain social and economic significance for the development of Xinjiang 's foreign trade and the promotion of the healthy and stable development of Xinjiang 's economy.This paper,while searching and summarizing relevant literature at home and abroad,combined with the socialist economic system and operating mode with Chinese characteristics,the economic development status of western ethnic regions,the use of FDI,foreign trade development and other relevant literature,comprehensively analyzed The related theoretical system elaborates the world-renowned achievements in social development,economic growth,foreign trade,and utilization of FDI after reform and opening up in Xinjiang.Looking at Xinjiang's economic growth,utilization of FDI,foreign trade development process and achievements are inseparable from China's policy guidance and government support for the use of FDI.This article first introduces FDI,GDP,and import and export variables based on the time series data of Xinjiang from 1990 to 2017,constructs a VAR model,analyzes the linksbetween FDI,economic growth,and foreign trade development,using qualitative and quantitative analysis methods,and Conduct dynamic econometric research on these three variables,analyze the impact of FDI on economic growth in Xinjiang and the contribution of foreign trade development to the economy,and the problems in the process of foreign investment in Xinjiang.By establishing a VAR model,The Ranger causality test and pulse corresponding test further empirically test the cointegration relationship among FDI,foreign trade,and economic growth,and provide effective empirical support for the construction of the theoretical framework.Finally,drawing on the positive experience of developed regions in the central and eastern regions,and combining Xinjiang's own characteristics,the efficiency of FDI utilization will be improved to realize the transformation and upgrading of the industry in order to attract more external investors.The results of the study show that FDI and Xinjiang's economic growth are in a mutually influential situation.The use of increased FDI can not only bring about an increase in foreign trade levels,but also have a crucial impact on scientific transformation,technology,competition and other aspects for the industrial transformation and upgrading of Xinjiang's economy.FDI and foreign trade can create new vitality and vitality for Xinjiang's economic growth and have a positive effect on economic growth and foreign trade.