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Abstract:Economic growth is always the big issue in the world. There are a great amount of literatures and papers in this area. Meanwhile, trade is the main key to push the economic developments. Therefore, this paper will focus on the relation of trade development and economic growth. In addition, China has been developing its economic with fast pace in the world. It is really worth to look at the relations between trade structure and economic growth there. Hence, the entire paper will study this issue based on the case in China and all of the data are collected from the published Chinese economic indicators.
Meanwhile, the trade variables will be considered as the components of trade structure. How these variables affect the economic essay定制 growth contribute to the impact of trade structures on economic growth or/and development. The correlation of those trade variables on economic growth will be derived from the econometric EVC model.
The main objective of how trade structure affects economic growth based on China’s Economics will be explored step by step through this paper.

Content of Table

Acknowledgement 4
Abstract 5
Section1 -1.0 Introduction 6
1.1 Trade Econmic 7
1.2 Research Question & Objectives 9
1.3 Reserch Plan 9
1.3.1 Literature Review 9
1.3.2 Methodology 10
1.3.3 Data Analysis 11
1.3.4 Conclusions 12
1.4 Trade in China & Background Studies 12
1.4.1 Geographical and Resource Advances 12
1.4.2 Political & Cultural Issue 13
1.4.3 Open Policy and Economics 14
1.4.4 Nowadays 15
Section2 -2.0 Literature Review
2.1 Trade 17
2.2 Reason of Trade 17
2.3 Structure of Trade 18
2.4 Trade Variables
2.4.1 Inflation 19
2.4.2 FDI 20
2.4.3 Exports 21
2.4.4 Imports 21
2.4.5 Employment 22
2.4.6 Resources 23
2.4.7 Number of Trade Patners 24
2.4.8 Government Expenditure 24
2.4.9 Policy & Openness 25
2.5 Trade & Trade Models
2.5.1 Heckscher-Ohlin Model 26
2.5.2 Gravity Model 28
2.5.3 The Ricardian Model 29
2.5.4 New Trade Theory 30
2.6 Risks faced by Trade
2.6.1 Exchange Rate Risk 30
2.6.2 Political Risk 32
Section3 -3.0 Methodology
3.1 Deductive Approach 33
3.2 Data Collection 34
3.2.1Secondary Data 34
3.2.2Sample Size 36
3.3 Econometric Model: VEC Model 36
3.4 Research method and data description 38
3.4.1 Variable Description 38
Section4www.51lunwen.org -4.0 3.4.2 Other External factors
Empirical Analysis and its simple results 42
4.1 Cointegration Analysis of GDP, EX, IM, and TT 46
4.2 Cointegration Analysis of GDP, EPG, IPG, EMG and IMG 48
4.3 Cointegration Analysis of GDP, TGT, EGT, IGT, TPT, EPT and IPT 50
4.4 Conclusion 52
Section5 -5.0 Conclusions 55
58
Bibliography 57
Appendix 64

Bibliography
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Amann E & Rommich M (1999), The impact of exchange rate risk on inter-country trade and production, Review of international economics, May99, 7(2), pp297
Asia and South East Asia monitors (2007), US exposure threat to growth, Country report, 18(10), pp1-5
Awokuse, Titus O (2008), Trade openness an