An Empirical Analysis on the Effect of External Trade on Economic Growth in China

The relationship between external trade and economic growth in China is analyzed by applying co - integration analytical tools and Granger causality. The conclusion indicates that the relationship between external trade and economic growth remains steady for a long time, the output elasticity of import trade is bigger, and there is a uni -direction causality between export and economic growth. E-conomic growth in China is still an export - oriented growth, so the export trade must be strengthened and at the same time the role of import trade should be emphasized.