1 Exports , Domestic Demand and Economic Growth in China : Granger Causality Analysis

  • Wong Hock Tsen
  • Published 2006

Abstract

This study examines Granger causality among exports, domestic demand and economic growth in China using time series data over the period 1978-2002. This study uses two measures for domestic demand, namely household consumption and government consumption. The results show that bidirectional Ganger causality among these variables, namely exports, domestic demand and economic growth. Thus, there is a dynamic relationship among exports, domestic demand and economic growth. Exports and domestic demand are both important for economic growth in China. Moreover, economic growth in China has an impact on its exports and domestic demand. A successful and sustained economic growth requires growth in both exports and domestic demand.

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Cite this paper

@inproceedings{Tsen20061E, title={1 Exports , Domestic Demand and Economic Growth in China : Granger Causality Analysis}, author={Wong Hock Tsen}, year={2006} }