Guangdong: A catalyst for economic growth and exports in hunan province

Christer Ljungwall

Journal of Chinese Economic and Business Studies, 2004, vol. 2, issue 3, 249-265

Abstract: This paper uses the concept of Granger-causality to analyze the link between export expansion in the rapidly growing Guangdong province and GDP growth and exports in Hunan, its adjacent northwest neighbor province. Data cover the 1978 to 2001 period. A long-run equilibrium relationship is found between the variables and a long-run positive causality is detected from export expansion in Guangdong to both GDP growth and exports in Hunan. Hence, the results seem to support the unbalanced regional development policy implemented by the central government in the late 1970s and early 1980s.

Keywords: Spillover effects; backward linkages; error-correction; China; JEL classifications: C22; F14; F15; O10; O53 (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/147658042000276114

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