Empirical Study on Relations of Foreign Trade and Economic Growth——Based on the Co integration and Granger Causality Estimation of the Data from 1978 to 2010 in Henan Province

According to 1978-2010 statistical data,this paper analyzes the relationship between import and export trade and economic growth in Henan Province from the statistical perspective,we found that dependence on foreign trade is far below same level as China,although trade elasticity of GDP is flexible,but trade boosting economic development in Henan province is low.From the perspective of Johansen co integration test,error correction model and Granger causality test.Henan foreign trade and economic growth have long-term equilibrium relationship,and import and export Granger causes economic growth,foreign trade in Henan Province has a positive role in promoting economic growth.