Research on the Association Mechanism between China's Textile Industry and Macroeconomic — Based on VAR Model

Abstract:

This paper studies the relationship between the development of textile industry and the macroeconomic growth. By establishing the VAR model and co-integration test, the paper systematically describes the dependency between them. It also applies the method of impulse response function and variance decomposition to analyze their dynamic correlations. The result shows that there exists a long-term relationship between the textile industry and macroeconomic in China. But the relevance between them has something alike as well as something different through the analysis of impulse response function and variance decomposition. The good functioning of macroeconomic creats favourable conditions for the development of the textile industry. However, the influence on the textile industry of macroeconomic has a time-lag effect.

• Periodical: Advanced Materials Research (Volumes 332-334)
• Pages: 2050-2053
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.332-334.2050
• Online since: September 2011
• Authors: Fan Li, Zhi Min Song, Xing Han
• Keywords: Cointegration Test, Impulse Response Function, Textile Industry, VAR Model, Variance Decomposition

References

[1] Information on http://www.ctei.gov.cn/ (In Chinese )

[2] Qinghui Zhang: submitted to Wool Textile Journal (2009) (In Chinese )

[3] Lijuan Xiong, Kai Huang: submitted to Journal of International Trade (2006) (In Chinese )

[4] Hongjuan Yu : submitted to Journal of Special Zone Economy (2007) (In Chinese )