China's technology progress and international trade: Granger causality test on China's data

This paper analyzes the effects of technology progress on international trade and the effects of international trade on technology progress theoretically, and then analyses the relationship between China's international trade and China's technology progress empirically by Granger causality test, based on the data of China's economy from 1992 to 2010. The results show that China's export trade and import trade have promoted China's technology progress, and there are technology spillover effects of China's international trade. And then the increases of R&D expense and of granted patents lead to the increase of China's export trade and import trade, the more China's products participate in trade because of the improvement of China's technology. Finally the paper puts forward the countermeasures to promote our international trade and improve China's technology progress.