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Frontiers of Economics in China

Front Econ Chin    2011, Vol. 6 Issue (3) : 464-478
International Trade and Technological Progress in China: Evidence from Time Series
Yaojun Yao()
College of Finance, Zhejiang Gongshang University, Hangzhou 310018, China
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Using annual time series data (1983-2007), this paper examines the nexus between international trade and technological progress in China. The time series properties of the data are analyzed by bounds testing approach and vector error-correction model. The empirical results show that, it is not international trade volume and export trade volume but the import trade volume that is cointegrated with total factor productivity. The paper also finds that, in the long run, there is a reciprocal Granger causal relationship between the change of import trade volume and the change of total factor productivity, and in the short run, there is no evidence to support the Granger causality between these changes of the two variables.

Keywords international trade      total factor productivity      bounds testing approach      vector error-correction model     
Corresponding Author(s): Yaojun Yao,   
Issue Date: 05 September 2011
 Cite this article:   
Yaojun Yao. International Trade and Technological Progress in China: Evidence from Time Series[J]. Front Econ Chin, 2011, 6(3): 464-478.
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