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International Trade and Technological Progress in China: Evidence from Time Series

Author

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  • Yaojun Yao

    (College of Finance, Zhejiang Gongshang University, Hangzhou 310018, China)

Abstract

Using annual time series data (1983-2007), this paper examines the nexus between international trade and technological progress in China. The time series properties of the data are analyzed by bounds testing approach and vector error-correction model. The empirical results show that, it is not international trade volume and export trade volume but the import trade volume that is cointegrated with total factor productivity. The paper also finds that, in the long run, there is a reciprocal Granger causal relationship between the change of import trade volume and the change of total factor productivity, and in the short run, there is no evidence to support the Granger causality between these changes of the two variables.

Suggested Citation

  • Yaojun Yao, 2011. "International Trade and Technological Progress in China: Evidence from Time Series," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 6(3), pages 464-478, September.
    • Handle: RePEc:fec:journl:v:6:y:2011:i:3:p:464-478
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-011-0142-4
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    More about this item

    Keywords

    international trade; total factor productivity; bounds testing approach; vector error-correction model;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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