INVESTIGATION OF THE RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH IN THE CASE OF CHINA

Masoud Ali Khalid; Khalid Hayder A.Ali

doi:10.29121/granthaalayah.v5.i7.2017.2122

Authors

Masoud Ali Khalid College of Finance & Administration, Department of Banking & Financial Science, Cihan University/ Sulaimani, Kurdistan Region Government/Iraq
Assist. Prof. Dr.Khalid Hayder A.Ali Sulaimani University, College of Administration & Economics, Department of Economic 3 College of Finance & Administration, Department of Accounting by IT, Cihan University/ Sulaimani, Kurdistan Region Government/Iraq

DOI:

https://doi.org/10.29121/granthaalayah.v5.i7.2017.2122

Keywords:

Economic Growth, Trade, ARDL Model, China

Abstract [English]

In this paper, we have investigated the relationship between trade openness and long-run economic growth over the sample period 1960–2015, utilizing ARDL model. We found evidence that trade openness is directly correlated with economic growth in the long run. Furthermore, Granger Causality tests recommended that a change in trade openness impacts the long-run of economic growth through the interaction with gross capital formation in the case of China.

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