Linear Analysis of the Correlation Between Industrial Development and Foreign Trade Development in Guangdong Province—Based on Time Series Data from 2005 to 2018

Abstract

As a developed province along the eastern coast of China, Guangdong Province has a close relationship between industrial development and foreign trade. Based on the 2005-2018 time series data, the relevant principles and methods such as least squares method and elasticity theory were used to conduct an empirical analysis of the correlation between Guangdong’s industrial development and foreign trade. The research found that compared with the tertiary industry, the secondary industry is more closely related to foreign trade. However, the tertiary industry is more sensitive to changes in foreign trade. Based on the quantitative measurement of the correlation between industrial development and foreign trade, a number of policy recommendations were proposed.