China has witnessed
many exciting changes after the Chinese government adopted reform and opening-up
policy in 1978. In this process, the United States has a positive influence on
China’s economic growth. Traditional view thinks that the influence of exports
on China's GDP growth is greater than imports, but the result of regression
analysis shows that imports have a greater impact on China’s GDP growth rather
than the exports. Based on the statistics from 1998-2007, China’s GDP will increase
by 0.455% if the volume of China’s exports to US increases by 1% while China’s
GDP will increase by 0.825% if the volume of China’s imports from US increases by
1%.
References
[1]
Andrea, M. (2004) The True Meaning of David Ricardo’s Four Magic Numbers. Journal of International Economics, 62, 433-443.
[2]
Lewer, J.J. and Berg, H.V.D. (2003) How Large Is International Trade’s Effect on Economic Growth. Journal of Economic Surveys, 17, 363-396. http://dx.doi.org/10.1111/1467-6419.00198
[3]
Dong, M. (2000) An Analysis of the Relations between China’s Foreign Trade and Economic Growth. Journal of Northwest University, 30, 81-85.
[4]
Yao, L. (2001) An Analysis on the Contribution of Foreign Trade to China’s Economic Growth. Statistical Research, 18, 20-22.
[5]
Shen, G. and Gu, A.Y. (2007) Revealed Comparative Advantage, Intra-industry Trade and the US Manufacturing Trade Deficit with China. China & World Economy, 15, 87-103. http://dx.doi.org/10.1111/j.1749-124X.2007.00094.x
