Economics, Econometrics and Finance
8 years ago

China's Foreign Trade Boosts Economic Growth, Reveals Causality Relationship

Journal of Guizhou College of Finance and Economics
The Impact of Foreign Trade on Economic Growth in China——Cointegration Analysis and Short-run and Long-run Causality Testing
Gong Zhan-kui

Paper Summary

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The study looked at how foreign trade affects China's economy. They found that there is a long-term connection between imports, exports, and GDP. Import and export growth leads to GDP growth, but not the other way around. GDP and exports influence each other, while GDP and imports have a one-way relationship.