IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v27y2004i10p1571-1582.html
   My bibliography  Save this article

On the Relationship Between Openness and Growth in China: Evidence from Provincial Time Series Data

Author

Listed:
  • Jang C. Jin

Abstract

The effect of increasing openness on real output growth in China is examined. The framework of analysis is a regression model that uses time‐series data for each province. For east coastal provinces, increasing openness is found to have positive effects on real output growth, and some of the effects are statistically significant. The results appear to be broadly consistent with the new growth theories that openness enhances long‐run growth through its impact on technological improvement. However, inland provinces in China have been isolated from world trade for several decades and their economies devastated. An increased openness in these provinces is found to have, in most cases, negative effects on real output growth.

Suggested Citation

  • Jang C. Jin, 2004. "On the Relationship Between Openness and Growth in China: Evidence from Provincial Time Series Data," The World Economy, Wiley Blackwell, vol. 27(10), pages 1571-1582, November.
    • Handle: RePEc:bla:worlde:v:27:y:2004:i:10:p:1571-1582
    DOI: 10.1111/j.1467-9701.2004.00667.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9701.2004.00667.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9701.2004.00667.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John F. Helliwell, 1996. "Convergence and Migration among Provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 324-330, April.
    2. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    3. Dane Rowlands, 1996. "Regional Development in Canada: Problems and Prospects," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 340-343, April.
    4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    5. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    6. Harrison, Ann & Hanson, Gordon, 1999. "Who gains from trade reform? Some remaining puzzles," Journal of Development Economics, Elsevier, vol. 59(1), pages 125-154, June.
    7. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    8. Gonzalo, Jesus & Lee, Tae-Hwy, 1998. "Pitfalls in testing for long run relationships," Journal of Econometrics, Elsevier, vol. 86(1), pages 129-154, June.
    9. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-1393, September.
    10. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
    11. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    12. Smith, Tim R., 1990. "Regional export growth: Lessons from State-level foreign trade data," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 20(1), pages 1-18.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Flávio Vilela Vieira & Michele Polline Veríssimo, 2005. "Crescimento Econômico De Longo Prazo Na China: Uma Investigação Econométrica," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 067, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Qun Bao & Puyang Sun & Jiayu Yang & Li Su, 2010. "Does High-tech Export Cause More Technology Spillover? Evidence from Contemporary China," Discussion Papers 10/06, University of Nottingham, GEP.
    3. Michieka, Nyakundi M. & Fletcher, Jerald & Burnett, Wesley, 2013. "An empirical analysis of the role of China’s exports on CO2 emissions," Applied Energy, Elsevier, vol. 104(C), pages 258-267.
    4. Resmini, Laura, 2006. "Theoretical and Methodological Study on Comparative Advantages in Dynamic Growth Regions, Convergence and Inequalities Patterns," Papers DYNREG03, Economic and Social Research Institute (ESRI).
    5. Christopher Edmonds & Sumner J. La Croix & Yao Li, 2006. "The China's Rise as an International Trading Power," Economics Study Area Working Papers 88, East-West Center, Economics Study Area.
    6. You, Kefei & Solomon, Offiong Helen, 2015. "China's outward foreign direct investment and domestic investment: An industrial level analysis," China Economic Review, Elsevier, vol. 34(C), pages 249-260.
    7. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2006. "Industrial development in the inland region of China: A case study of the motorcycle industry," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 818-838, December.
    8. Vanegas Sr., Manuel & Croes, Robertico, 2007. "Tourism, Economic Expansion and Poverty in Nicaragua: Investigating Cointegration and Causal Relations," Staff Papers 7306, University of Minnesota, Department of Applied Economics.
    9. Jang C. Jin, 2021. "The benefits of economic openness for North Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(2), pages 151-164, November.
    10. Musila, Jacob W. & Yiheyis, Zelealem, 2015. "The impact of trade openness on growth: The case of Kenya," Journal of Policy Modeling, Elsevier, vol. 37(2), pages 342-354.
    11. Maria Jesus Herrerias & Vicente Orts, 2011. "The driving forces behind China’s growth," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 79-124, January.
    12. Zied AKROUT, 2022. "L'Impact De L’Ouverture ÉConomique Sur La Croissance Rã‰Gionale En Tunisie," Romanian Journal of Economics, Institute of National Economy, vol. 54(1(63)), pages 58-79, June.
    13. María Jesús Herrerias & Vicente Orts, 2010. "Is the Export-led Growth Hypothesis Enough to Account for China's Growth?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(s1), pages 34-51.
    14. Li, Yao, 2008. "Industrial Agglomeration and Wage Inequality in China," MPRA Paper 11426, University Library of Munich, Germany, revised Oct 2008.
    15. Jalil, Abdul, 2012. "Modeling income inequality and openness in the framework of Kuznets curve: New evidence from China," Economic Modelling, Elsevier, vol. 29(2), pages 309-315.
    16. repec:ocp:rpaper:rp-16/10 is not listed on IDEAS
    17. Haq, Munshi Masudul, 2008. "Growth and openness: empirical evidence from Bangladesh," MPRA Paper 35732, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Jang C., 2006. "Openness, growth, and inflation: Evidence from South Korea before the economic crisis," Journal of Asian Economics, Elsevier, vol. 17(4), pages 738-757, October.
    2. Jin, Jang C., 2006. "Can openness be an engine of sustained high growth rates and inflation?: Evidence from Japan and Korea," International Review of Economics & Finance, Elsevier, vol. 15(2), pages 228-240.
    3. Romain Wacziarg, 2001. "Measuring the Dynamic Gains from Trade," The World Bank Economic Review, World Bank, vol. 15(3), pages 393-39-429.
    4. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    5. MALEK MANSOUR Joffrey, 2010. "Trade Openness and Growth: Does Sector Specialization Matter?," EcoMod2003 330700093, EcoMod.
    6. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.
    7. Eriṣ, Mehmet N. & Ulaṣan, Bülent, 2013. "Trade openness and economic growth: Bayesian model averaging estimate of cross-country growth regressions," Economic Modelling, Elsevier, vol. 33(C), pages 867-883.
    8. Ulaşan, Bülent, 2012. "Openness to international trade and economic growth: A cross-country empirical investigation," Economics Discussion Papers 2012-25, Kiel Institute for the World Economy (IfW Kiel).
    9. Jang C. Jin, 2021. "The benefits of economic openness for North Korea," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(2), pages 151-164, November.
    10. Gylfason, Thorvaldur, 1999. "Exports, Inflation and Growth," World Development, Elsevier, vol. 27(6), pages 1031-1057, June.
    11. Bajo-Rubio, Oscar & Ramos-Herrera, María del Carmen, 2023. "Does international trade promote economic growth? Europe, 19th and 20th centuries," GLO Discussion Paper Series 1358, Global Labor Organization (GLO).
    12. Diaz-Bautista, Alejandro, 2002. "The role of telecommunications infrastructure and human capital: Mexico´s economic growth and convergence," ERSA conference papers ersa02p102, European Regional Science Association.
    13. Mr. Allan D. Brunner, 2003. "The Long-Run Effects of Tradeon Income and Income Growth," IMF Working Papers 2003/037, International Monetary Fund.
    14. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    15. Hyeon‐Seung Huh & Cyn‐Young Park, 2021. "A new index of globalisation: Measuring impacts of integration on economic growth and income inequality," The World Economy, Wiley Blackwell, vol. 44(2), pages 409-443, February.
    16. Sinem Pınar Gürel & Aykut Lenger, 2016. "The Nonlinear Analysis of External Dynamics on Economic Growth: The Case of Turkey," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 9(1), pages 57-68, April.
    17. Edwards, Sebastian & Levy Yeyati, Eduardo, 2005. "Flexible exchange rates as shock absorbers," European Economic Review, Elsevier, vol. 49(8), pages 2079-2105, November.
    18. Mtiraoui, abderraouf, 2015. "Openness, Human Capital and Economic Growth in MENA: Theoretical foundations and application to Dynamic panel data," MPRA Paper 61530, University Library of Munich, Germany.
    19. Frankel, Jeffrey A. & Romer, David & Cyrus, Teresa, 1995. "Trade and Growth in East Asian Countries: Cause and Effect?," Center for International and Development Economics Research (CIDER) Working Papers 233408, University of California-Berkeley, Department of Economics.
    20. Mariam Camarero & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann & Cecilio Tamarit, 2016. "Trade Openness and Income: A Tale of Two Regions," The World Economy, Wiley Blackwell, vol. 39(3), pages 386-408, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:27:y:2004:i:10:p:1571-1582. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.