Jurnal Ekonomi dan Studi Pembangunan (JESP)
Vol 10, No 2 (2018)

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

Yugang He (Department of International Trade, Chonbuk National University)
Eunmo Lee (Department of International Trade, Chonbuk National University, Korea)



Article Info

Publish Date
22 Aug 2018

Abstract

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. In more specifically, if the export from China to South Korea increases by 1 per cent, the economic growth in China will increases by 0.769 per cent. Meanwhile, the result of Granger causality test also reveals that there is an unidirectional causality between them exists under 5 per cent 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 per cent. 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, ...