Role of International Trade in Chinese Economic Development

Won W. Koo and Jianqiang Lou

Review of Development Economics, 1999, vol. 3, issue 1, 98-106

Abstract: This study examines the interdependency between Chinese agricultural and industrial sectors. A dual economic model was developed to investigate the relationship between the two sectors and factors affecting Chinese economic development. The study reveals that inputs, such as labor, are important to Chinese economic development. Capital investment contributed to the growth of the Chinese industrial sector. The results also suggest that foreign trade has made a significant contribution to economic development. Growth of the Chinese agricultural sector seems to depend on industrial growth, but growth of the industrial sector does not rely on agricultural growth.

Date: 1999
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