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Evaluation of Trade Influence on Economic Growth in China: A Time Series Analysis

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  • Bakari, Sayef
  • Saaidia, Fatma

Abstract

This paper investigates the relationship between exports, imports, and economic growth in China. In order to achieve this purpose, annual data were collected from the reports of World Bank for the periods between 1960 and 2015, was tested by using Augmented Dickey-Fuller (ADF) and Phillip-Perron (PP) stationary test, cointegration analysis of Vector Error Correction Model and the Granger-Causality tests. According to the result of the analysis, unit root tests show that economic growth, exports and imports series become stationary when first difference is considered. Also, it was determined by using co integration analysis that there is relationship between the three variables in Chine in the long run term only. Also, and according to the Vector Error Correction Model, exports have a positive effect on economic growth. However, imports have a negative effect on economic growth. These results provide evidence that exports are seen as the source of economic growth in China.

Suggested Citation

  • Bakari, Sayef & Saaidia, Fatma, 2016. "Evaluation of Trade Influence on Economic Growth in China: A Time Series Analysis," MPRA Paper 75826, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75826
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    References listed on IDEAS

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    1. Ahdi N. Ajmi & Goodness C. Aye & Mehmet Balcilar & Rangan Gupta, 2015. "Causality between exports and economic growth in South Africa: evidence from linear and nonlinear tests," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(2), pages 163-181, April-Jun.
    2. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    3. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    4. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    5. Hakan Çetintaş & Salih Barişik, 2009. "Export, Import and Economic Growth: The Case of Transition Economies," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 15(4), pages 636-649, February.
    6. Maja Trošt & Štefan Bojnec, 2016. "Export-led growth: the case of the Slovenian and Estonian economies," Post-Communist Economies, Taylor & Francis Journals, vol. 28(3), pages 373-383, July.
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    Citations

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    Cited by:

    1. El Weriemmi, Malek & Bakari, Sayef, 2024. "Impacts of Agricultural Exports and CO2 Emissions on Economic Growth: New Evidence from High Income Countries," MPRA Paper 121697, University Library of Munich, Germany.
    2. El Weriemmi, Malek & Bakari, Sayef, 2024. "Impacts of Agricultural Exports and CO2 Emissions on Economic Growth: New Evidence from High Income Countries," MPRA Paper 121888, University Library of Munich, Germany.
    3. Bakari, Sayef, 2022. "The Nexus between Domestic Investment and Economic Growth in Developed Countries: Do Exports matter?," MPRA Paper 114394, University Library of Munich, Germany.
    4. Bakari, Sayef, 2024. "The Role of Digitalization, Natural Resources, and Trade Openness in Driving Economic Growth: Fresh Insights from East Asia-Pacific Countries," MPRA Paper 121643, University Library of Munich, Germany.
    5. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of Agricultural Exports on Economic Growth: New Evidence from Low Income Countries," MPRA Paper 121631, University Library of Munich, Germany.
    6. Nadia Ben Yedder & Malek El Weriemmi & Sayef Bakari, 2023. "The Impact of Domestic Investment and Trade on Economic Growth in North Africa Countries: New Evidence from Panel CS-ARDL Model," EuroEconomica, Danubius University of Galati, issue 2(42), pages 22-41, November.
    7. El Weriemmi, Malek & Bakari, Sayef, 2024. "The Impact of CO2 Emissions, Domestic Investment and Trade Openness on Economic Growth: New Evidence from North African Countries," MPRA Paper 122152, University Library of Munich, Germany.
    8. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.
    9. El Weriemmi, Malek & Bakari, Sayef, 2024. "Exploring the Influence of Agricultural Exports on Economic Growth: Fresh Insights from Upper Middle-Income Nations," MPRA Paper 121660, University Library of Munich, Germany.
    10. Bakari, Sayef, 2021. "Reinvest the relationship between exports and economic growth in African countries: New insights from innovative econometric methods," MPRA Paper 108785, University Library of Munich, Germany.

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    More about this item

    Keywords

    Exports; Imports; Economic Growth; Chine; Cointegration; Vector Error Correction Model and Causality.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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