Testing effects of openness in the process of China's economic growth during 1978-1995

Hong Li ()
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Hong Li: Kingston University London

No 2000-1, Economics Discussion Papers from School of Economics, Kingston University London

Abstract: This paper presents an endogenous growth model in which the growth rate of income is higher if the economy is more open. Openness, measured by the ratios of imports and of foreign direct investment to GDP, is hypothesised to affect economic growth through its impact on technological changes. The hypothesis cannot be rejected with Chinese data at the provincial level for the period 1978-1995 as there is a significantly positive correlation between growth of real GDP per worker and the measures of openness. This paper further tests the robustness of the effect and studies the alternative effects of openness on economic growth.

Keywords: China; Trade openness; Economic growth (search for similar items in EconPapers)
JEL-codes: F15 O47 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2000-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:ris:kngedp:2000_001

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