Research on Relationship between Trade and Economic Growth -Based on Panel Co-integration Method

摘要

This paper apply the panel co-integration method by computer with the Eviews software and the Winrats software, analyze the relationship between international trade and FDI and economy growth for the three economic zones of China, which are the eastern area of China and the central area of China and the western area of China. The results show that there are stable panel co-integration relationships between international trade and FDI and economy growth for the three economic zones of China. The development of international trade and FDI played a great role in the developing of regional economy in China. But, there are differences among the three economic zones of China; its promoting effect to the western area is greater than the central area and the eastern area.