Reasearch on Regional Differences Between China's Economic Growth and Export Trade Based on the Analysis of a Random Effects Model

Abstract

This paper analyzes the factors that influence the economic growth of the provinces of China by means of a Panel Data Model. Traditional analytical methods of economic growth are compared with a Panel Data Model. The results of empirical research indicate that the changes of fixed assets investment, gross domestic export, and macroeconomic policies will affect China's GDP. It is finally concluded that export is the driving force behind economic growth in China. This conclusion is quite different from traditional analysis.

Keywords

• Economic growth
• Panel Data
• OLS
• Foreign direct investment
• Dummy variables