Jurnal Ekonomi dan Studi Pembangunan (Journal of Economics and Development Studies)
Article in Press 2018

A Dynamic Study between Export from China to South Korea and Economic Growth in China

He, Yugang (Unknown)



Article Info

Publish Date
05 May 2018

Abstract

Since the establishment of China and South Korea diplomatic relations in 1992, South Korea has become one of the most biggest trade partners for China. Therefore, this paper applies annual data from 1998 to 2016 to search for the dynamic operating mechanism between export from China to South Korea and economic growth in China. The vector error correction model is utilized to conduct an empirical analysis. The results indicate that there is a long-run relationship between them. Namely, if the export from China to South Korea increases by 1%, the economic growth in China will increases by 0.769%. Meanwhile, the result of Granger causality test also reveals that there is an unidirectional causality between them exists under 5% significance level. More importantly, the result of vector error correction mechanism shows that when the economic growth is derivate from the long-run equilibrium in the short run, it will return to the long-run equilibrium by 2.2%.Keywords: Economic Growth, Export from China to South Korea, Vector Error Correction ModelJEL Classification: C02, F10, F19

Copyrights © 2018






Journal Info

Abbrev

jesp

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi dan Studi Pembangunan focuses on scientific papers related to development economics include critical analysis of economic development issues, local economic development, community economic development, economic growth, international trade and finance, fiscal and monetary policy, ...