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Pulling by domestic demand, export expansion and net export growth
2014-08-29
By Li Shantong, Liu Yunzhong, Zhai Fan
Date: 2001/09/29
--A note concerning contribution by imports and exports to the GDP growth
Abstract:
In the framework of the simple Keynesian Multiplier model, the contribution by export expansion and net export growth to economic growth was discussed. The main finding is that both net export and GDP growth depend on investment, export, savings propensity and import propensity. The growth of net export cannot be used as an indicator to evaluate foreign demand. The empirical data in China also indicates that the correlation between China's GDP growth rate and her export far exceeds that between her GDP growth rate and her net export.?
