A cointegration analysis on the relationship between foreign trade and economic growth in Shaanxi Province

This paper analysis the relation between the foreign trade and economic growth of Shaanxi Province based on the data from1980-2007,by using the Granger causality test,cointegration test and error correcting model.The result demonstrates that there is a long cointegration relationship between foreign trade and economies increase.At present,Shaanxi belongs to export direction economy,export is the Granger causality,and import is the export Granger causality,so import has a indirect function to the economic growth.