The Impact of Foreign Trade in Zhejiang on the Changing of Economic Growth Mode

Based on the data of Zhejiang GDP and import export in 1986-2006, this paper analyzes the operating path of Zhejiang trade and economy, and measures the influence of four indicators, dependence on foreign, contribution rate, pulling degree and flexibility, on Zhejiang foreign trade and economic growth. And then, the paper uses cointegration theory and Granger causality test methods to empirically analyze the relationship between foreign trade and economic growth in Zhejiang province. The results show that: there exists unidirectional Granger causality from export to economic growth. At the same time, through the establishment of error correction model (ECM), the paper gives a good fitting result, thus provides a new evidence for the hypothesis of exports led growth (EL).