1、 Contributions of Foreign Trade to Chinas Economic Growth -Especially after 2000AbstractAs is known to all ,in 1978, China entered the new period of reform and opening-up. Sparing no effort to develop foreign trade became an important channel to accelerate modernization, shake off backwardness, boos
2、t the economic development, and improve comprehensive national strength, especially after 2000.And foreign trade can be divided into three forms: export trade ,import trade ,and transit trade .The objective of this paper is to demonstrate and analyze the contributions that the foreign trade, three m
3、odes of trading ,made to China s economic growth. Finally , we come to a conclusion: foreign trade makes swingeing contributions to Chinas economy.Key words :economic growth,export trade ,import trade ,and transit trade1. IntroductionThere is no denying that ,in the last few decades, big as our coun
4、try was ,the financial situation was by no means satisfactory .However, Since the beginning of the opening up policy, Chinas foreign trade has developed faster than the gross domestic product (GDP), becoming a driving force for the national economy. From 1980 to 2000, the total volume of foreign tra
5、de increased from $38100000000 to $474300000000.Thats a 11.4-fold increase, and the average annual growth is 13.4%.Therefore,its as plain as daylight that the foreign trade greatly boost our national economic growth, but our true understanding of the relationship between foreign trade and economic g
6、rowth in China plays a vital role in continuing developing foreign trade and improving our countrys economic growth rate. All in all, demonstrate and analyze contributions of foreign trade to Chinas economic growth is significant and valuable.2. Affects of three modes of tradesFrom the angle of the
7、cargo movement , the foreign trade is made up of three forms :export trade ,import trade ,and transit trade. There is no denying that three modes of trades are never completely independent and autonomous activities, instead ,they are closely related.2.1Export trade Export trade means shipping the pr
8、oducts produced or processed interiorly to foreign market to sell.Through the export,foreign trade can provide new opportunities for the excess domestic production capacity.The expansion of exports makes a significant contribution to the increase of the national incomes.As a part of the total demand
9、,the increase of the exports directly drive the growth of GDP,as well as the consumption.investment, government expenditure and imports.Meanwhile,export indirectly stimulate economic growth.The key to develop a countrys foreign trade is the expansion of its export. Without export, there can be no gu
10、arantee of realizing its import plan. Therefore, export trade is virtually the foundation of Chinas foreign trade. Only by exporting ,can China obtain adequate foreign exchange to purchase the necessary raw materials, advanced technology and badly needed equipment for the modernization programs. Spe
11、cific data is presented in table 1: Table1: Export and the development of economyTimeGDP/billion yuan Export volume/billion dollarsGDP growth rateContributing ratio of export trade 199121781.5719.19.227.40199226923.5849.414.216.92199335333.5917.413.57.61199448197.91210.112.642.37199560793.71487.810.
12、517.32199671176.61510.59.61.32199778973.01827.98.839.29199884402.31837.17.81.83199989677.11949.37.124.94200099214.62492.08.060.692001109655.22661.07.321.472002120322.73255.76.719.222003135822.84383.77.423.12004159878.35933.67.952.122005183867.97626.08.019.432006209406.89690.77.220.86 (statics come f
13、rom 2013 China Year Book)As is known to all,foreign trade is an indispensable element to any countrys economy .But there are many reasons why a country especially a developing one like China shall try to expand the exports. The reasons are listed below:2.11Increase scale of productionBy exporting, i
14、ndustries can increase the scale of their production thus increasing efficiency and lowering costs,Cases in point are the textile industry and garment industry in Shanghai and Guangzhou.Another case in point is the manufacturing industry,such as tires toys and machine components might not have been
15、developed to such a large scale if it were not for export.2.12Promote economic growthDevelopment of export industry helps create new employment and stimulate economic growth.The proper example is the motor corporations in China.In recent 10 years ,they have made remarkable contributions to supply mo
16、re and more goods with high quality for export.2.13Drive technological advanceCompetition in international markets provokes exporters to acclimatize their products to the needs of the market,which mainly happened in high-tech world.Here is a famous example on Apple Inn.It researched and developed th
17、e touch screen mobile phone,which causes a new revolution in communication industry and promote technological progress.2.2Import Trade Import trade means shipping the products produced or processed in foreign market to our domestic market to sell.Import can accelerate the development and production
18、of its new products.But there are other reasons why a country especially a developing one like China should try to expand the imports. The reasons are listed below:2.21Solve the supply bottleneck of resource,technology With the rapid economic growth in China, domestic investment and consumer demand
19、have beyond the current domestic productivity.Worse still, the current production and supply are unable to meet the demand of advanced technology, which has resulted in supply bottleneck. In all walks of life,especially in high-tech field, only by importing the sources that the domestic markets are
20、short of, can the supply bottleneck solved. Importing key equipment and advanced technology is a major way of making the transformation from the closed economy to the open one and enhancing a steady and constant economic growth in China.For example ,since 1980s, the industrial materials China import
21、ed every year has been taking 40% to 50% of the total imports. Fortunately, The import of large volume of raw materials and resources has eased the pressure of domestic limited resources and compensated domestic supply shortfall, thus contributing to the rapid economic development in China.2.22Raise
22、 productivityImporting advanced technology and equipment, can improve the technical level of various production departments in China and shorten technology gap with developed countries; What is more, introduction of scientific management , will make the domestic division of labor further integration
23、 with the world, Improved structure and further improve the productivity.2.23Ease trade frictionsIt is well acknowledged that trade surplus for a long time leads to the constant friction between China and America.In order to ease trade frictions,our country have to increase import because there is n
24、o way out.A factual basis is that,BoXilai, Chinas Commerce Minister tells the reporters on the two sessions that we never pursue trade surplus blindly, and China is encouraging import policy. 2.24 Other aspectsIn addition, more import means more demand for foreign exchange, which is favorable to exp
25、ort. Also, import is supportive of expanding foreign demand.2.3Transit tradeThe transit trade refers to that,in the international trade, the import and export of the cargoes are not operated between the producer and consumer countries directly, but to manipulated by third countries.Through the trans
26、it trade ,China can get considerable profits and other revenues from re warehousing, transportation, loading and unloading, taxes.It can also promote the development of the local finance, transportation, telecommunications and other industries.3. ConclusionAs is known to all, foreign trade plays an
27、extremely important role in promoting Chinas economic growth.In addition, the enhancement of the export trade does not mean that the import trade weakening the economic growth, and vice versa.No one can deny the fact that cooperation of three kinds of trade modes can further accelerate the rapid dev
28、elopment of economy. Actively engaging in international trade greatly benefits Chinas economic growth. Last but not least ,economic globalization is an inevitable trend, only by adapting to the world market rules with the least delay possible and effectively operating international trades, can our c
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