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.