TITLE:
Empirical Analysis on the Influencing Factors of China’s Total Foreign Trade
AUTHORS:
Songyan Zhang, Yeling Dai, Yuefu Lai
KEYWORDS:
Total Foreign Trade, Exchange Rate, Commodity Retail Price Index, The Proportion of Tertiary Industry, Multiple Regression Model
JOURNAL NAME:
Journal of Applied Mathematics and Physics,
Vol.7 No.7,
July
10,
2019
ABSTRACT:
On the occasion of the 40th anniversary of reform and opening up, China’s economic growth level has steadily risen and its international status has gradually improved. However, as the global economic downturn, China is facing tremendous challenges and pressures in the international economic and financial markets. The turbulence of foreign trade and international financial markets has put forward greater requirements for the flexibility of China’s financial strategy. Based on the annual data of China’s total foreign trade, exchange rate, commodity retail price index and the proportion of tertiary industry from 2002 to 2017, this paper constructs a multiple regression model to analyze the main influencing factors of China’s total foreign trade. The empirical results show that there is a positive relationship between the commodities retail price index and the total foreign trade, a negative relationship between the proportion of tertiary industry and the total foreign trade, and a positive relationship between the exchange rate of RMB (taking US dollar as an example) and the total foreign trade. On the basis of empirical analysis, the paper puts forward suggestions on relevant financial policies.