EconPapers    
Economics at your fingertips  
 

Determinants of Consumption Function, In Case of China and G7 Countries

Khalid Khan, Chen Fei, Muhammad Kamal and Sarfaraz Ahmed Shaikh
Additional contact information
Khalid Khan: School of Economics, Huazhong University of Science and Technology, (HUST), Wuhan, P.R. China
Chen Fei: School of Economics, Huazhong University of Science and Technology, (HUST), Wuhan, P.R. China
Sarfaraz Ahmed Shaikh: School of Economics, Huazhong University of Science and Technology, (HUST), Wuhan, P.R. China

International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 4, 202-210

Abstract: Purpose: The objective of the study is to estimate consumption function for China and G7countries. Methodology: The study applied ARDL approach to estimate consumption function over the period 1985 to 2013. Findings: The results of the study indicate that Gross Domestic Product (GDP) and wealth are the most important determinants of aggregate consumption in both short and long run. However, real interest rate, negatively affect the aggregate private consumption both in the long and short run, apart from Canada, similarly, unemployment rate have negative effect of aggregate consumption in all cases. Recommendations: This study open new directions for further research.

Keywords: Private Consumption; Gross Domestic Product (GDP); Wealth; Real Interest Rate (search for similar items in EconPapers)
JEL-codes: E2 F43 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://tesdo.org/shared/upload/pdf/papers/IJEER,%203_4_,%20202-210%20.pdf (application/pdf)
http://tesdo.org/journal_detail.php?paper_id=152&expand_year=2015 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ijr:journl:v:3:y:2015:i:4:p:202-210

Access Statistics for this article

International Journal of Economics and Empirical Research (IJEER) is currently edited by Dr. Muhammad Shahbaz (PhD Applied Economics)

More articles in International Journal of Economics and Empirical Research (IJEER) from The Economics and Social Development Organization (TESDO) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Shahbaz (PhD Applied Economics) ().

 
Page updated 2022-08-22
Handle: RePEc:ijr:journl:v:3:y:2015:i:4:p:202-210