Globalization and Economic Growth in China
Keywords:
Globalization, Trade Openness, FDI, China and AsiaAbstract
The Asian continent is rapidly becoming the global economy's nerve centre. It is possible that by 2040, the area would be responsible for more than 40% of world consumption and over half of global GDP. Meanwhile, the Chinese economy is the biggest in the Asian region, against this backdrop, the study estimates how globalization and its spillovers have affected economic growth in China over the period of 1990 and 2021. The study utilized FMOLS as its technique of estimation in analyzing the objective of the study with the following conclusion; trade openness had a positive and significant relationship with economic growth in China. The number of Chinese residents who have access to internet had both positive and significant relationship with the country`s economic growth. Though, FDI had a positive relationship with Chinese economic growth but the relationship is insignificant. However, remittances and number of people who have access to electricity had a positive but non-significant relationship with economic growth in China. Therefore, globalisation has benefited the Chinese economic growth positively in such a way that trade openness contributed a significant impact but the impact of FDI is not significant. Therefore, the policymakers in China should sustain a continuous opening of the Chinese economic to international trade. In the same vein, more inflows of FDI into China should be facilitated by Chinese government policies via the provision investment climate environment.
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Copyright (c) 2024 Timothy Ayomitunde Aderemi, Misery M. Sikwela, Wisdom Okere
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