A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China

The role of foreign direct investment (FDI) and exports continues to be debated and tested in the literature on international economics and development economies. This paper extends the previous empirical studies on the issue by providing some evidence from time-series data period over 1980-2010 of...

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Main Author:	Aheniyazi, Kabiguli
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/3532/1/s810170.pdf https://etd.uum.edu.my/3532/7/s810170.pdf
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id	my-uum-etd.3532
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Lim, Hock Eam
topic	HB Economic Theory
spellingShingle	HB Economic Theory Aheniyazi, Kabiguli A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
description	The role of foreign direct investment (FDI) and exports continues to be debated and tested in the literature on international economics and development economies. This paper extends the previous empirical studies on the issue by providing some evidence from time-series data period over 1980-2010 of People’s Republic of China. In this study, the dependent variables were economic growth. The model tested using unit root test, Granger causality, Vector Autoregressive (VAR) and Impulse Response Function (IRF) to analysis that dynamic relationship between economic growth, FDI, export and import. In terms of causality the result shows economic growth will provide a positive influence on the level of FDI, that is, economic growth (GDP) granger causes on Foreign Direct Investment (FDI), and there is a mutual influence between export and import because of intra-trade and imports of intermediate goods. The Vector Autoregressive (VAR) and Impulse Response Function (IRF) approach is to investigate the response of the system to economic shocks; the results showed that, the country’s economic growth is influenced by its lagged values of GDP. Finally this paper draws some policy implications for the further studies to focus on the economic growth in China, to ensure that economic growth would not be drop.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Aheniyazi, Kabiguli
author_facet	Aheniyazi, Kabiguli
author_sort	Aheniyazi, Kabiguli
title	A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
title_short	A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
title_full	A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
title_fullStr	A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
title_full_unstemmed	A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China
title_sort	var analysis on relationship of international trade, fdi and economic growth in china
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3532/1/s810170.pdf https://etd.uum.edu.my/3532/7/s810170.pdf
_version_	1747827596249268224
spelling	my-uum-etd.35322022-04-10T05:58:41Z A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China 2012 Aheniyazi, Kabiguli Lim, Hock Eam Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB Economic Theory The role of foreign direct investment (FDI) and exports continues to be debated and tested in the literature on international economics and development economies. This paper extends the previous empirical studies on the issue by providing some evidence from time-series data period over 1980-2010 of People’s Republic of China. In this study, the dependent variables were economic growth. The model tested using unit root test, Granger causality, Vector Autoregressive (VAR) and Impulse Response Function (IRF) to analysis that dynamic relationship between economic growth, FDI, export and import. In terms of causality the result shows economic growth will provide a positive influence on the level of FDI, that is, economic growth (GDP) granger causes on Foreign Direct Investment (FDI), and there is a mutual influence between export and import because of intra-trade and imports of intermediate goods. The Vector Autoregressive (VAR) and Impulse Response Function (IRF) approach is to investigate the response of the system to economic shocks; the results showed that, the country’s economic growth is influenced by its lagged values of GDP. Finally this paper draws some policy implications for the further studies to focus on the economic growth in China, to ensure that economic growth would not be drop. 2012 Thesis https://etd.uum.edu.my/3532/ https://etd.uum.edu.my/3532/1/s810170.pdf text eng public https://etd.uum.edu.my/3532/7/s810170.pdf text eng public masters masters Universiti Utara Malaysia A.H Baharom, Muzafar Shah Habibullah and R.C Royfaizal, (2008). “The relationship between trade openness, foreign direct investment and growth: Case of Malaysia” MPRA Paper No. 11928. Alan Krueger and Mikael Lindahl, (2000). “Education for Growth: Why and For Whom?” Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section. Andong Zhu and David M. Kotz, (2010). “The Dependence of China's Economic Growth on Exports and Investment” Beijing, China Amherst, MA, USA Codes: O53, F43, O11. Anne O. 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A Var Analysis on Relationship of International Trade, FDI and Economic Growth in China

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