Import, Export and Economic Growth: A GMM Analysis Based on Dynamic Panel Data from Chinese Prefecture City

Abstract:

This paper employed GMM for the first time to estimate the dynamic relevance between foreign trade and the economic growth based on the panel data of 284 Chinese Prefecture cities from 1994 to 2010. We find that both export and import improve the economic in general and the export-led growth hypothesis holds in China. Especially, the positive impact of import maybe even outnumber export. This finding is important to reconsider the weight of the export and import and correct the development strategy to sustainable development strategy.That would help reduce the pollution from inefficiency production to export and the environmental damage. Furthermore there is no significant evidence of investment and human capital in promoting economic development .

• Periodical: Advanced Materials Research (Volumes 869-870)
• Pages: 676-682
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.869-870.676
• Online since: December 2013
• Authors: Li Ming Hong
• Keywords: Dynamic Panel Data, Economic Growth, Export, GMM, Import

References

[1] Grossman, Gene M, and Elhanan Helpman: European Economic Review Vol. 35(1991), pp.517-526.

[2] Ronald I. McKinnon: The Economic Journal Vol. 74 (1964), pp.388-409.

[3] Matthews, R. C. O: Scottish Journal of Political Economy Vol20 (1973), pp.195-209.

[4] Zhang, K.H., Contemporary Economic Policy Vol. 19 (2001) , pp.175-185.

[5] Francisco Rodriguez and Dani Rodrik: NBER Macroeconomics 15(2000), pp.261-338.

[6] Moschos, D: Journal of Development Economics Vol. 30（1989）, p.93–102.

[7] Sachs, J.D., Warner, A: Brookings Papers on Economic Activity Vol. 1 (1995), p.1–118.

[8] Tyler, W. G: Journal of Development Economics Vol. 9 (1981), p.121–130.

[9] Ghosh, Dipak: The Journal of Developing Areas Vol. 30 (1996), pp.167-182.

[10] Guangyao Xu: International trade issues Vol. 2(2007), P. 3-7. In Chinese.

[11] Ghartey, Edward E: Applied Economics Vol. 25 (1993), pp.1145-1152.

[12] Bonai Fan, Yibing Wang: International trade issues Vol. 4 (2004), pp.8-13. In Chinese.

[13] Jiang Du: International trade issues Vol. 4(2007), pp.9-12. In Chinese.

[14] Qiquan Xiong, Shier Yang: International trade issues Vol. 2 (2005), pp.5-10. In Chinese.

[15] Helian Xu, Mingyong Lai: Journal of Hunan University Vol. 29 (2002), pp.124-128. In Chinese.

[16] Herzer Dierk; Nowak-Lnowak-Lehmann, Felicitas D.; Siliverstovs Boriss: Developing Economies Vol. 44(2006), pp.306-328.

[17] Keller W: NBER Working Paper(1999), pp.69-90.

[18] Edwards, Sebastian: The Economic Journal Vol. 108(1998), pp.383-398.

[19] Halit Yanikkaya: Journal of Development Economics Vol. 72 (2003), p.57– 89.

[20] Jianbao Chen, Bo Dong: Engineering Vol. 29(2011) , pp.952-956.

[21] Information on http: /ssrn. com/abstract=1373882 or http: /dx. doi. org/10. 2139/ssrn. 1373882.

[22] Foster, Neil: Journal of Development Studies Vol. 42(2006), pp.1056-1074.

[23] Konya, László: Economic Modelling Vol. 23(2006), pp.978-992.

[24] Arellano, Manuel and Stephen Bond: Review of Economic studies Vol. 58 (1991), pp.277-297.

[25] Roodman, David: Center for Global Development Working Paper 103(2006) . Information on http: /ssrn. com/abstract=982943 or http: /dx. doi. org/10. 2139/ssrn. 98294.