Cointegration Analysis and ECM of Industrial Economy and Direct Foreign Investments of China
Author(s)
Ying Yin*
Affiliation(s)
Department of Economics and Management, Hunan Electrical College of Technology, Xiangtan Hunan, China.
Department of Economics and Management, Hunan Electrical College of Technology, Xiangtan Hunan, China.
ABSTRACT
Based on cointegration theory and Granger causality test, applied on the gross domestic production of industry and direct foreign investments economic statistic data from 1983 to 2010 of China to analyze the long and steady dynamic equilibrium relations. Research results indicate that there is long-term stable one-way Granger causality relationship between the growth of gross domestic production of industry and direct foreign investments. The growth of direct foreign investments affect the growth of gross domestic production of industry, but industrial economic growth is not the reasons of the direct foreign investments.
Based on cointegration theory and Granger causality test, applied on the gross domestic production of industry and direct foreign investments economic statistic data from 1983 to 2010 of China to analyze the long and steady dynamic equilibrium relations. Research results indicate that there is long-term stable one-way Granger causality relationship between the growth of gross domestic production of industry and direct foreign investments. The growth of direct foreign investments affect the growth of gross domestic production of industry, but industrial economic growth is not the reasons of the direct foreign investments.
Cite this paper
Y. Yin, "Cointegration Analysis and ECM of Industrial Economy and Direct Foreign Investments of China," iBusiness, Vol. 5 No. 1, 2013, pp. 35-38. doi: 10.4236/ib.2013.51B008.
Y. Yin, "Cointegration Analysis and ECM of Industrial Economy and Direct Foreign Investments of China," iBusiness, Vol. 5 No. 1, 2013, pp. 35-38. doi: 10.4236/ib.2013.51B008.
References
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[1] Tan Yuanfa. Circular economy of equipment manufac-turing [M]. Beijing: China economic publishing house, 2010. [2] Jeffrey M. Woddridge, Introductory Econo-metrics: A Modern Approach. Third Edition [M]. Beijing: Tsinghua University Press, 2007. [3] Tan Yuanfa, Yin Ying, Cointegration Between the Growth of Industrial Economy and Foreign Trade [J]. Consume Guide,2008-3. [4] Ugur S.S Ramazan. Energy con-sumption and GDP: Causality relationship in G-7 coun-tries and emerging markets [J]. Energy Economics, 2003-25:33～37. [5] Glasure Y U.Lee A R. Co-integration, error-correction and the relationship be-tween GDP and Electricity: the case of South Korea and Singapore[J]. Resource and Electricity Econom-ics,1997-20:17～25. [6] Cheng B. S. An investigation of cointegration and causality between energy consump-tion and economic growth [J]. Journal of Energy Devel-opment ,1995-21:73～84.