THE EXPORT-LED GROWTH: A CASE STUDY OF CHINA Dilek ?AH?N

Abstract

Author(s): THE EXPORT-LED GROWTH: A CASE STUDY OF CHINA Dilek ?AH?N

China has been one of the world’s fastest growing economies in recent years. Export is a key factor in promoting economic growth. The export- led growth hypothesis assumed that exports are the chief determinant of overall economic growth and the exports positively contribute to economic growth. This study empirically investigates the export-led growth hypothesis for China using the annual data for the period 1982 to 2014. This study investigates the causal relationship between exports and economic growth by using Johansen cointegration and Granger causality approach. Based on the findings of cointegration approach this study concludes that there exists long run equilibrium relationship between exports and GDP per capita. Granger causality test show that unidirectional causality from economic growth to export.

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