Temporal causality and the dynamics of exports, human capital and real income in China
Narayan, Paresh Kumar and Smyth, Russell 2004, Temporal causality and the dynamics of exports, human capital and real income in China, International journal of applied economics, vol. 1, no. 1, pp. 24-45.
Title
Temporal causality and the dynamics of exports, human capital and real income in China
This article employs cointegration and error-correction modelling to test the causal relationship between real income, exports and human capital stock using data for China over the period 1960 to 1999. We find that real exports, human capital and real income are cointegrated when real exports is the dependent variable, but are not cointegrated when human capital or real income are the dependent variable. In the short-run we find evidence of bi-directional Granger causality between human capital and real exports, unidirectional Granger causality running from real income to human capital and neutrality between real exports and real income.
Language
eng
Field of Research
140212 Macroeconomics (incl Monetary and Fiscal Theory)