As the reform and opening-up policy is carried out in China for more thirty year, China’s economy has experienced a amazingly rapid development. So, this paper focuses much on the linkage between foreign trade and economic growth. Three variables (GDP, export and import) from 1980 to 2016 are used to conduct empirical analysis under VAR model. Via empirical analysis between foreign trade and economic growth, a finding is obtained that there is a long-run equilibrium relationship among GDP, export and import. Specifically, the export has a long-run significant effect on economic growth in China. However, the impact of import to promote economic growth is greatly less than that of export.
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. Methodology
Ⅳ. Empirical Analysis
Ⅴ. Conclusion