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An empirical investigation of the causal relationship between openness and economic growth in China

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  • Xiaming Liu
  • Haiyan Song
  • Peter Romilly

Abstract

This study investigates the causal relationship between openness and economic growth in China. The integration and cointegration properties of the data are analysed and the models of Granger, Sims, Geweke and Hsiao are used to identify a bi-directional causal relationship between GNP and exports plus imports. This bi-directional causation is consistent with China's development strategy of protected export promotion

Suggested Citation

  • Xiaming Liu & Haiyan Song & Peter Romilly, 1997. "An empirical investigation of the causal relationship between openness and economic growth in China," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1679-1686.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:12:p:1679-1686
    DOI: 10.1080/00036849700000043
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