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Exports, Domestic Demand, and Economic Growth in China: Granger Causality Analysis

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  • Wong Hock Tsen

Abstract

This study examines Granger causality among exports, domestic demand, and economic growth in China using time-series data over the period from 1978 to 2002. This study uses three measures for domestic demand, namely household consumption, government consumption, and investment. The results show bidirectional Granger causality among these variables, namely exports, domestic demand, and economic growth. Thus, there is a dynamic relationship among exports, domestic demand, and economic growth. Exports and domestic demand are both important for economic growth in China. Moreover, economic growth in China has an impact on its exports and domestic demand. A successful and sustained economic growth requires growth in both exports and domestic demand. Copyright (C) 2010 Blackwell Publishing Ltd.

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  • Wong Hock Tsen, 2010. "Exports, Domestic Demand, and Economic Growth in China: Granger Causality Analysis," Review of Development Economics, Wiley Blackwell, vol. 14(s1), pages 625-639, August.
  • Handle: RePEc:bla:rdevec:v:14:y:2010:i:s1:p:625-639
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    Cited by:

    1. Adusei Poku, Eugene & Broni-Pinkrah, Samuel & Effah Nyamekye, Gabriel, 2016. "Modelling and assessment of the effect of income on service exports in Ghana," MPRA Paper 72312, University Library of Munich, Germany.
    2. Xing, Yuqing & Pradhananga, Manisha, 2013. "How Important are Exports and Foreign Direct Investment for Economic Growth in the People’s Republic of China?," ADBI Working Papers 427, Asian Development Bank Institute.

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