therelationship between export and economic growth

Running Head : Export and Economic Growth

Relationship between Export and Economic Growth of China

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Relationship between Export and Economic Growth of China

Exports and Economic Growth of China

Economic growth is one of the major issues for the world community (Moschos , p93 , 1989 ) and experts for many years strives to identify the factors that have the potential to effect the economic growth of countries . In this regard there are many economic variables identified by the economic experts like the capital asset stock , labor , land , trade

br liberalization , FDI , domestic entrepreneur development and so on . Export growth is also identified is the major factor that has strong relationship with the economic growth and it is supposed that strong export growth can accelerate the economy of a country

This relationship has been proved by many of the researchers (Kavoussi p241 , 1984 Balassa , p23 , 1985 Ram , p415 , 1985 ) through different empirical studies and most of the research work came up with the evidences that prove strong links between the exports and the economic growth . The economist of the neoclassical school especially believe that exports can have major contribution in the economic growth of any country because exports result in the rise in the rate of investment and at the same time the exporting country also get the benefits of large economies of scale when they reach large markets (Kavoussi , p241 , 1984 However it is also a fact that the relationship between exports and the economic growth is supported by many of the empirical studies but there is no overall consensus over this issue and some researchers (Kraf and Kraf , p401 , 1978 Arnade et al , p174 , 1999 ) found that the export growth does not supports the economic growth so well that the relationship between these two economic variables could be established . Thus it is found that the relationship between export and economic growth is an important point of concerns for the economic experts all over the world In the same way it is also an important issue to find out the evidences regarding the relationship between the economic growth and export in a developing country like China because these evidences can prove to be an example for other developing countries that they can foster their economic growth through strengthening their exports activities or not Alaei Far (2002 ) noticed that there are many empirical studies conducted around this and most of these studies came up with the conclusion that export growth has played a fundamental role in the economic development of China (Lie , et al , p1679 , 1997 McNab et al , p237 , 1998 Poon and Jessie , p90 , 1995

The following review of the literature is focused on the research studies that are conducted by the social scientists during different periods of time through the analysis of the economic data of different countries . The literature review mainly focuses in the discussion of the relationship between exports and economic growth in China however the research studies conducted to find out a general...