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There is a general belief that export expansion has a close relationship with economic growth. To assess the belief, this study investigates the impact of export expansion on economic growth in China using data covering the period from 1978 to 2003. This study supports one way-directional causality that export expansion has affected economics growth in China. The results of OLS using level of variables is statistically significant at 1%. Therefore, This result means that in the long run, export expansion has affected economic growth in China. The results of error correction model using first differenced variable show that in the short run export expansion does not have affected economic expansion, however, in the long run export expansion has affect economic growth in China. The result of Mah(2005) shows a statistically significant bi-directional causality between export expansion and economic growth whereas this study support that in the long run export expansion has affected economic growth in China, because using data for the both studies are different.


There is a general belief that export expansion has a close relationship with economic growth. To assess the belief, this study investigates the impact of export expansion on economic growth in China using data covering the period from 1978 to 2003. This study supports one way-directional causality that export expansion has affected economics growth in China. The results of OLS using level of variables is statistically significant at 1%. Therefore, This result means that in the long run, export expansion has affected economic growth in China. The results of error correction model using first differenced variable show that in the short run export expansion does not have affected economic expansion, however, in the long run export expansion has affect economic growth in China. The result of Mah(2005) shows a statistically significant bi-directional causality between export expansion and economic growth whereas this study support that in the long run export expansion has affected economic growth in China, because using data for the both studies are different.