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A Study on the Relationship of the International Trade and the Development of Economy in the West of China

Author: PengBo
Tutor: ZhangPeng
School: Chongqing University
Course: Industrial Economics
Keywords: International trade development of economy the west area
CLC: F127
Type: Master's thesis
Year: 2007
Downloads: 536
Quote: 2
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Abstract


There are three main questions of the research in the article: First, the situation of the development of West’s international trade which create the connection influence to the development of region economy; Second, the mechanisms and the channels which create influence to economy from the development of West’s international trade; Third, the path character and the experience we found from the development stage of the East, the Middle and the West.In view of the above questions, this article use the multiply theory of Cairns and points of inner technology of New Classic Theory to separate the different influence channels, and research the reasons of supply and the demand of international trade which influenced the development of region economy. The two reasons mean the long-time factor and the short-time factor. In the short-time stage, the influence of the international trade makes it run because of the demand factor. In the long-time stage, the influence makes it run because of the supply factor. So, we use the panel data of the province to make the analysis, and choose the Pool Ordinary Least Squared, Fixed-effects Model, Ran Dom-effects Model and Feasible General Least Squared to do the research.The findings indicate: First, there are three important factors of the development of Western economy including international trade, the accumulation of capital and the human capital. The investment and the human factor are more important. This way will be a big problem of the development of Western economy; Second, there is no big difference among the 12 provinces of the West, but there is a big difference of the influence of the export trade to the economy. Although the influences are right, the one of the Middle is the biggest, and the one of the West is the weakest. Third, the influence of export trade to the region economy is bigger than the influence of import trade. In fact, the finding means the export trade is fit for the development of demand of our country, and the import trade is more important to the improvement of technology. But in the present stage, economy grows mainly depend on the growing of demand, as to use inner production ability. But in fact, this kind of trade expand of demand-guide is to fix the export trade by using inexpensive labor resources and the natural resource. Obviously, this kind of growth pattern is not sustainable.This article makes the different analysis about the relationship of the international trade and the development of economy of the western area, and has made the comparison of the situation of international trade and development of economy among the East, the Middle and the West, and we found the advantage and disadvantage of the international trade of the West. As a kind of attempt, the article has provided a kind of new mentality for the research of the western economy growth, which certainly has academic significance and the practical significance.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > The local economy
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