An Empirical Study on the Relationship between China’s Food Trade and Economic Growth in Food Industry

Abstract

The study is focused on the relationship between food trade and Economic Growth in food industry in China. First, we review some theories of foreign trade promoting economic growth, which is considered as theoretical basis of studying the paper. Then, we introduce the general situation about the food trade and the food industry since the reform and opening-up of China. On the basis of these, it make an Empirical Study on the relationship between trade and Economic Growth in food industry by using a mass of data: by using Co-integration model to analyze the relationship between the export and import of food and economic growth of food industry; by using Feder model to find out an indirect enhancive function to the growth of its food industry through externality effects on other sectors; by using Panel Data model to compare the extent of the influence on the local food industry. Finally, it presents some suggestions to improve international trade’s positive influences on economic growth of food industry in China from the government and the foodstuff corporation aspects.