The Impact of International Trade on Regional Economic Growth Rates — An Empirical Analysis Based on Data from Prefecture-Level Cities in China

Zhang Xu

doi:10.54097/8nbctq24

Authors

Zhang Xu

DOI:

https://doi.org/10.54097/8nbctq24

Keywords:

International trade, economic growth rate, dynamic panel.

Abstract

Accurately and comprehensively assessing the magnitude and mechanisms of the impact of international trade on China’s long-term economic growth is of great significance for the government to adopt targeted policies. Using data from China’s prefecture-level cities from 2004 to 2017, sourced from the China City Statistical Yearbook and the China Statistical Yearbook, this paper empirically examines the impact of international trade on regional economic growth rates in China and the corresponding mechanisms within the SYS-GMM estimation framework. The study finds that international trade has a positive effect on China’s economic growth rate. Further mechanism decomposition indicates that the facilitative effect of international trade on economic growth exhibits significant heterogeneity across technological level, human capital, and employment, while its impact on industrial structure shows a U-shaped pattern, decreasing first and then increasing.

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