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Lo, Dic (2004) China’s Nexus of Foreign Trade and Economic Growth: Making Sense of the Anomaly. London: SOAS Department of Economics Working Paper Series; No. 143.

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Abstract

Using a range of specifications that are standard in the relevant literature, this paper finds that China’s rapid and sustained economic growth in the reform era has tended to be negatively correlated with its export growth and positively correlated with its import growth. This finding runs counter to widely-held perceptions on China’s nexus of foreign trade and economic growth, and thus presents a serious challenge for interpretation. On the basis of some further regression analyses, and drawing on a number of applied studies on the subject matter, the paper argues that the finding is plausible and of complex ramifications. The conclusion which this paper arrives at, therefore, is that the Chinese experience has tended to be a case of strategic integration into the world market, rather than conforming to the standard neoclassical thesis of trade regime neutrality.

Item Type: Monographs and Working Papers (Working Paper)
Keywords: China, foreign trade, economic growth
SOAS Departments & Centres: Legacy Departments > Faculty of Law and Social Sciences > Department of Economics
ISSN: 17535816
Date Deposited: 16 Mar 2006
URI: https://eprints.soas.ac.uk/id/eprint/106

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