Empirical Research On China's Foreign Trade And Economic Growth: 1979-2008

Based on the relevant data from 1979 to 2008 and by Co-integration and Granger Causality Test, this paper expounds the empirical relations between foreign trade and economic growth in China. Co-integration test discoverys that the long-term relation between them has positive correlation, ECM indicates that the short-term relation between them has negative correlation, but the latter influence is much smaller than the former; Although the short-term disequilibrium is inevitable, it can be in convergence to the long-term equilibrium and The foreign trade change causes the economic growth, but is not in the reverse direction As a result, the paper puts forward the corresponding policy proposals.