Title: Granger Causality Tests among Openness to International Trade, Human Capital Accumulation and Economic Growth in China: 1952-1999
Author: Tsen, Wong Hock
Author Affiliation: Universiti Malaysia Sabah, Malaysia
Source: International Economic Journal, September 2006, v. 20, no. 3, pp. 285-302
Publication Date: September 2006
Abstract: The study examines Granger causality among openness to international trade, human capital and economic growth in China using time series data over the period 1952-1999 and a sub-period of 1978-1999. For 1952-1999, economic growth is found to Granger cause human capital and not vice versa. For 1978-1999, economic growth and openness to international trade, economic growth and human capital, and human capital and openness to international trade are found to have bi-directional Granger causality, respectively. Thus, there is a dynamic relationship among openness to international trade, human capital and economic growth. The experience of economic reform in China could be an example to other developing countries.

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