Abstract: Based on measuring the quality of China’s economic growth with provincial data, this paper estimates the effect of FDI and international trade on economic growth quality, as well as government factor’s effect in this process empirically, and gets some conclusions. Firstly, the quality of China’s economic growth improves rapidly in the sample period, charactering the rise of growth efficiency and stability and the decline of sustainability. Secondly, FDI and international trade both have significant positive effects on China’s economic growth quality, while the government factor promotesFDI and have non-significant impact on international trade. Thirdly, FDI only has a significant positive effect on growth sustainability, which is hampered by the government factor. International trade has a significant positive effect on the growth efficiency and stability and a negative effect on growth sustainability, and the government factor hampers international trade’s effect on stability. The above analysis shows that the scales of both China’s international trade and FDI inflow are in rational scopes, while the policy efficiency still needs enhancing. Improving the quality of China’s economic growth requires strengthening foreign investment guidance and changing the focus of international trade.
Keywords: Foreign Direct Investment, International Trade, Economic Growth Quality, Government Factor
source:Finance & Trade Economics ,No9,2013