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An Analysis of Correlative Relationship Between Import and Economic Growth

Shiteng Xu

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Abstract

The paper applies Granger causality test and co-integration process to investigating the relationship between import and economic growth from 1952 to 2002 in china.The conclusion indicates that there is two-direction causality between import and GDP and the steady relationship.The Error Correction Model between them is built by EG two-step method with the correlative long-term effect and short-term effect on import.

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What this paper is about

The paper applies Granger causality test and co-integration process to investigating the relationship between import and economic growth from 1952 to 2002 in china.The conclusion indicates that there is two-direction causality between import and GDP and the steady relationship.The Error Correction Model between them is built by EG two-step method with the correlative long-term effect and short-term effect on import.

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Available abstract

The paper applies Granger causality test and co-integration process to investigating the relationship between import and economic growth from 1952 to 2002 in china.The conclusion indicates that there is two-direction causality between import and GDP and the steady relationship.The Error Correction Model between them is built by EG two-step method with the correlative long-term effect and short-term effect on import.

Key concepts: Correlative, Granger causality, Causality (physics), Error correction model, Economics, Econometrics, China, Term (time)

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