Empirical Analysis of Relationship Between Processing Trade and Economic Growth in Shandong Province

From the time of reforming and opening, processing trade of Shandong province wins sustainable development. However, compared with big foreign trade provinces, such as Guangdong, and Jiangsu etc., Shandong province still has big gap with them. The value-added coefficient of processing trade in Shandong Province is higher than the national average. An empirical analysis to processing trade of Shandong Province is conducted, with processing trade's contribution and pull index of economic growth, and using of linear regression method, and the analysis shows that: in the long run, there is a stable positive relationship between the processing trade and Shandong economic growth, but compared with the general trade, its leading role is smaller. So we should extend product processing chain, and promote transformation and upgrading of processing trade.