Empirical Analysis of the Impact of China's Foreign Trade on Economic Growth in China

Econometric method is applied in the ADF testing on the stability of relevant economic variables time series data, the cointegration analysis on the stable variables after adjustment, and the research on whether equilibrium relation exists in the long run. Analysis is conducted on the cause-and-effect impact of various economic variables in long run equilibrium and short run fluctuation, via cointegration equation, error correction model and Granger Causality Test. The result of the research shows that in the short run, economic growth is inclined to be restrained by needs, while in the long run, it is determined by the improvement of production effectiveness. Therefore, China should continue to promote exporting trade to facilitate economic growth, and attach importance to the impact of importing on economic growth, to polish up the economic effect of importing.