Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68455
Authors: 
Dreger, Christian
Zhang, Yanqun
Year of Publication: 
2013
Series/Report no.: 
DIW Discussion Papers 1264
Abstract: 
Despite high economic growth during the last decades, China is still vulnerable to shocks arising from industrial states. The advanced economies determine Chinese export performance, with subsequent effects on output growth. Using a production function approach, this paper examines to which extent regional GDP growth in China is export driven. In a panel of 28 Chinese provinces, series are splitted into common and idiosyncratic components, the latter being stationary. The results indicate cointegration between the common components of GDP, the capital stock and exports. In equilibrium, exports increase GDP by more than their impact expected from the national accounts. While exports and capital are weakly exogenous, GDP responds to deviations from the long run. An adjustment pattern can be detected for almost all regions, except of some provinces in the Western part of the country.
Subjects: 
Chinese economy
panel co-integration
expert led growth
JEL: 
F43
O11
C23
Document Type: 
Working Paper

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