Analysis on co-integration and causality relationship between foreign trade and economic growth of Heilongjiang province
Changyuan Gao
Abstract
Changyuan Gao
Abstract
Based on the data of Heilongjiang province from 1980 to 2004,the relationship between foreign trade and economic growth is analyzed by using unit root test,Co-integration theory and Granger test.The result indicates that there is a long-term equilibrium relationship between economic growth and import-export trade,but the causal relationship between them is not extraordinarily prominent only with the unilateral effect of import trade on economic growth.
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Based on the data of Heilongjiang province from 1980 to 2004,the relationship between foreign trade and economic growth is analyzed by using unit root test,Co-integration theory and Granger test.The result indicates that there is a long-term equilibrium relationship between economic growth and import-export trade,but the causal relationship between them is not extraordinarily prominent only with the unilateral effect of import trade on economic growth.
Key concepts: Granger causality, Unit root, Economics, Causality (physics), Unit root test, Economic integration, International economics, International trade