China´s technology progress and international trade: Granger causality test on China´s data

This paper analyzes the effects of technology progress on international trade and the effects of international trade on technology progress theoretically, and then analyses the relationship between China´s international trade and China´s technology progress empirically by Granger causality test, based on the data of China´s economy from 1992 to 2010. The results show that China´s export trade and import trade have promoted China´s technology progress, and there are technology spillover effects of China´s international trade. And then the increases of R&D expense and of granted patents lead to the increase of China´s export trade and import trade, the more China´s products participate in trade because of the improvement of China´s technology. Finally the paper puts forward the countermeasures to promote our international trade and improve China´s technology progress.