An Empirical Research on the Relationship between Foreign Trade and Economic Growth in China

Based on the statistics of China from 1980 to 2006,using Cointegration Analysis and Error Correction Model,we study the relationship between foreign trade and economic growth.The result shows as follows:there is a stable relationship between economic growth and import,export,consumption and investment from a long term,they are all the Granger causes of economic growth,while economic growth is only the Granger cause of consumption;from a short term,the consumption on the economic growth is the most conspicuous,the import and export also strongly affect economic growth.