An Empirical Analysis of the Impact of Foreign Trade on Economic Growth in Hubei Province : —based on logarithmic linear model

Abstract

Since the reform and opening up, the economy and foreign trade of China have developed rapidly. Meanwhile, the foreign trade development of Hubei province has also undergone a qualitative change. Based on the Hu-bei’s data from 1999 to 2018, firstly this paper discusses the background and significance of this research. In addition, it expounds the current situation of foreign trade and economic growth in Hubei Province in recent years. Then we make an empirical analysis of the effect of Hubei’s import and export on economic growth by using a logarithmic linear model to explain their relationships from a long-term and short-term perspective. The conclusions are as follows: the export and import trade of Hubei province promotes economic growth. In the long run, there exists a long-term and stable relationship among Hubei’s GDP growth, import and export. In the short run, the import stimulates the economic growth to a certain degree, and the effect of import on economic growth is weaker than export. Meanwhile, the corresponding suggestions are put forward on this basis.