IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v7y2019i2p56-d240636.html
   My bibliography  Save this article

Foreign Trade Structure, Opening Degree and Economic Growth in Western China

Author

Listed:
  • Nan Li

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

  • Lipeng Sun

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

  • Xiao Luo

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

  • Rong Kang

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

  • Mingde Jia

    (School of Economics and Management, Northwest University, Xi’an 710069, China)

Abstract

This paper presents an interactive study on the relationship between the foreign trade structure, opening degree and economic growth of the provinces in western China (except Tibet). It shows that the export of primary products and labor-intensive products has a positive impact on the external development of the western region, while the export of capital and technology-intensive products has a smaller inhibitory effect on it. At the same time, the system GMM model shows that the opening degree of the western region has a positive effect on economic growth. After including the foreign trade structure interaction item, this result has not changed, and on the basis of opening up to the outside world, the export of labor-intensive products and capital-intensive products plays a significant role in promoting economic development. Therefore, this paper holds that the western region should optimize its foreign trade structure, continue to promote the construction of foreign trade demonstration, and give priority to the development of local characteristic industries to promote economic growth.

Suggested Citation

  • Nan Li & Lipeng Sun & Xiao Luo & Rong Kang & Mingde Jia, 2019. "Foreign Trade Structure, Opening Degree and Economic Growth in Western China," Economies, MDPI, vol. 7(2), pages 1-14, June.
    • Handle: RePEc:gam:jecomi:v:7:y:2019:i:2:p:56-:d:240636
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/7/2/56/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/7/2/56/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marilyne Huchet†Bourdon & Chantal Le Mouël & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," The World Economy, Wiley Blackwell, vol. 41(1), pages 59-76, January.
    2. Robert McNab & Robert Moore, 1998. "Trade policy, export expansion, human capital and growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(2), pages 237-256.
    3. Sheridan, Brandon J., 2014. "Manufacturing exports and growth: When is a developing country ready to transition from primary exports to manufacturing exports?," Journal of Macroeconomics, Elsevier, vol. 42(C), pages 1-13.
    4. Fayyaz Ahmad & Muhammad Umar Draz & Su-Chang Yang, 2018. "Causality nexus of exports, FDI and economic growth of the ASEAN5 economies: evidence from panel data analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(6), pages 685-700, August.
    5. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Mahendhiran Nair, 2017. "Trade openness, foreign direct investment, and finance-growth nexus in the Eurozone countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(3), pages 336-360, April.
    6. Marilyne Huchet & Chantal Le Mouel & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," Post-Print hal-01883878, HAL.
    7. Daniel Sakyi & Jose Villaverde & Adolfo Maza, 2015. "Trade openness, income levels, and economic growth: The case of developing countries, 1970--2009," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(6), pages 860-882, September.
    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. Zuzana Rowland & George Lazaroiu & Ivana Podhorská, 2020. "Use of Neural Networks to Accommodate Seasonal Fluctuations When Equalizing Time Series for the CZK/RMB Exchange Rate," Risks, MDPI, vol. 9(1), pages 1-21, December.

    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. Klimis Vogiatzoglou, 2019. "Export Composition and Long-run Economic Growth Impact: A Cointegration Analysis for ASEAN ‘Latecomer’ Economies," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(2), pages 168-191, May.
    2. Klaus Schmidt-Hebbel, 2019. "Macroeconomic Institutions: Lessons from World Experience for MENA Countries," Working Papers 1311, Economic Research Forum, revised 21 Aug 2019.
    3. Ricardo Ferraz, 2022. "The Portuguese Military Expenditure from a Historical Perspective," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(3), pages 347-365, April.
    4. Biswajit Maitra & Moutushi Chakraborty, 2021. "International trade, human capital and economic growth in Sri Lanka," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 405-426, September.
    5. Amir Iqbal & Xuan Tang & Samma Faiz Rasool, 2023. "Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2234-2263, March.
    6. Sèna Kimm Gnangnon, 2022. "Financial development and tax revenue in developing countries: investigating the international trade channel," SN Business & Economics, Springer, vol. 2(1), pages 1-26, January.
    7. Nathaniel P. S. Cook & Jason C. Jones, 2021. "The African Growth and Opportunity Act and growth in sub‐Saharan Africa: A local projection approach," The World Economy, Wiley Blackwell, vol. 44(1), pages 234-261, January.
    8. Mehmet Balcilar & Ojonugwa Usman & George N. Ike, 2023. "Investing green for sustainable development without ditching economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 728-743, April.
    9. Yan Zhang & Jiekuan Zhang, 2023. "Revisiting Tourism Development and Economic Growth: A Framework for Configurational Analysis in Chinese Cities," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    10. Ibrahiem, Dalia M. & Hanafy, Shaimaa A., 2021. "Do energy security and environmental quality contribute to renewable energy? The role of trade openness and energy use in North African countries," Renewable Energy, Elsevier, vol. 179(C), pages 667-678.
    11. Bakari, Sayef, 2018. "The Impact of Domestic Investment on Economic Growth New Policy Analysis from Algeria," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 3(1), pages 35-51, March.
    12. Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Remittances Review, vol. 4(2), pages 117-142, October.
    13. Amina Shahid, 2019. "Openness, Financial Development and Economic Growth in South Asia," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(3), pages 132-139, September.
    14. Xiao-Jun Goh & Wen-Qi Tong & Tuck-Cheong Tang, 2019. "Financial Openness and Trade Openness Nexus: Empirical Evidence from Global Data," Capital Markets Review, Malaysian Finance Association, vol. 27(1), pages 1-18.
    15. Ashiru Ibrahim & Michael Rabiu Abdulmalik, 2023. "Do trade openness and governance matter for economic growth in Africa? A case of EAC and WAEMU countries," International Economics and Economic Policy, Springer, vol. 20(3), pages 389-412, July.
    16. Fritz Breuss, 2018. "25 Years Single Market: Which Trade and Growth Effects?," WIFO Working Papers 572, WIFO.
    17. Vighneswara Swamy & Munusamy Dharani, 2020. "Thresholds of financial development in the Euro area," The World Economy, Wiley Blackwell, vol. 43(6), pages 1730-1774, June.
    18. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.
    19. Tandon, Anjali, 2020. "Is Domestic Value Addition a Source of Export Sophistication? A Case Study India," MPRA Paper 112771, University Library of Munich, Germany.
    20. Tahir, Muhammad & Hayat, Arshad, 2020. "Does International Trade Promote Economic Growth? An Evidence from Brunei Darussalam," MPRA Paper 102504, University Library of Munich, Germany.

    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:gam:jecomi:v:7:y:2019:i:2:p:56-:d:240636. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.