lecture 5 export and economic growth in china.pptVIP

Export and Economic Growth in China: A Demand-Oriented Analysis I. In the research period, China’s foreign trade has experienced a rapid growth. II. The relationship between China’s foreign trade and economic growth has become a hot issue. III. Two categories of present research: The causality between exports and economic growth or vice versa. The empirical analysis of the contribution of foreign trade to economic growth. The common shortcoming of the previous research is that they only estimate the direct impact of the export and ignore the indirect impacts. 祭途瘩粳汗畜眷萌挡莎阂定燥郁揪爬咀宙蜂扔仑咸姓胚恭郁靖蛾掇炕资矽lecture 5 export and economic growth in chinalecture 5 export and economic growth in china The Issues of Traditional Estimations The starting point is the accounting identity of GDP: Y=C+I+G+(X-M) (1) Differentiating(1) with respect to time gives(2). Equation (2) can be rewritten as equation(3) : 涛年宴骨仟肃豌好嫉杉擂撰辣埔娇毗扬屠茬形盐几莆蓖浚珠刑脓呐具枫掣lecture 5 export and economic growth in chinalecture 5 export and economic growth in china The Issues of Traditional Estimations In China, government expenditure, G, is not singled out in the calculation of GDP through an expenditure approach. C represents final consumption, which includes both household consumption and government consumption. I represents total capital formation, which includes both enterprise investment and the part of expenditure that is directly used for capital formation. 柒仰著荚堪馒戒器旦到娟纺歼羞刊滑捆梭森奶躺哭字碗阉弄顷雨奶燃摧斗lecture 5 export and economic growth in chinalecture 5 export and economic growth in china The Issues of Traditional Estimations The results of traditional estimations based on equation(4) are given in table 1 on page 4. Two characteristics of the traditional estimation: The calculation process is simple. Data are easily available. 永幕编骸沁区酪库眨养刹跑恩颈诺晶寒线乘委兑碰伏峻出鲸卸肉萧椽吉旅lecture 5 export and economic growth in chinalecture 5 export and economic growth in china The Issues of Traditional Estimations The contribution of foreign trade