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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2007, Vol. 2 Issue (4) : 623-643    https://doi.org/10.1007/s11459-007-0032-y
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Empirical analysis on the effect of economic opening on China’s economic growth
ZHANG Weifu, ZHU Zhigang
School of International Business & Economics, Nanjing University of Finance & Economics, Nanjing 210046, China
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Abstract Based on an adjusted Solow economic growth model, using econometric tools such as cointegration test and Granger causality test, taking the economic factors such as foreign trade and foreign investment into account, this paper makes regression analysis on the effect of economic opening on China’s economic growth by using the data from 1985 to 2004. The analysis indicates that the domestic capital input is still the primary element that promotes China’s economic growth, by contrast, the effect of foreign trade and foreign investment is faint. It is a bidirectional causality between foreign trade and economic growth, and the adjusting velocity of trade is larger than the foreign direct investment on the balance of the China’s long-time economic growth.
Issue Date: 05 December 2007
 Cite this article:   
ZHANG Weifu,ZHU Zhigang. Empirical analysis on the effect of economic opening on China’s economic growth[J]. Front. Econ. China, 2007, 2(4): 623-643.
 URL:  
http://academic.hep.com.cn/fec/EN/10.1007/s11459-007-0032-y
http://academic.hep.com.cn/fec/EN/Y2007/V2/I4/623
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