An Empirical Study on the Contribution of Foreign Trade on the Economic Growth of Guangxi Province, China

In open economy, development of foreign trade greatly impacts on GDP growth. Adapting simple regression for researching the relationship between foreign trade including total export and total import and GDP growth of Guangxi province, with the collected 30-year statistical data from 1978 to 2008. The result indicates that foreign trade has contributed a lot to the GDP growth of foreign trade and still has great potential to be tapped. There is a positive correlation between the foreign trade and GDP. And import has more and more influenced the economic growth of Guangxi province, China. What the most important is the growth has little interdependency on the net export. Finally, the paper points out that in order to maintain the economic growth, Guangxi must unswervingly implement the opening-up policy and be aware of trade protectionism.