Empirical Study on the Relationship Between China's Export Trade and Innovation Output

Export trade and innovation output are the important factors which can affect our country's sustainable economic development. Increasing export trade can promote economic growth and increase employment opportunities. In addition, innovation output can improve the competitiveness of enterprises in the international market, and it is conducive to the realization of sustainable economic development. In view of the mutual influence between export trade and innovation output, it is very important to explore the inherent relationship between export trade and innovation output. In order to show that there is a mutual relationship between export trade and innovation output, this paper will use the two-stage least squares method and the three-stage least squares method to predict the time series data between 2007 and 2015 using the system estimation method of simultaneous equations analysis, the results show that there is a mutually reinforcing relationship between export trade and technological innovation. The expansion of economic scale will increase the export trade and increase the power of innovation output. The increase in per capita income will not have a significant impact on export trade and innovation output. In terms of government policy, the findings suggest that any policy that promotes export trade or technological innovation can serve both purposes at the same time.