Fixed investment and economic growth in China

Andy C.C. Kwan, Yangru Wu, Junxi Zhang

Research output: Contribution to journalArticlepeer-review

16 Scopus citations


This paper attempts to investigate empirically the investment-growth relationship in China. Using the exogeneity framework pioneered by Engle et al. (1983) and Engle and Hendry (1993), we find that fixed investment is a key determinant of China's economic growth, which, surprisingly, has not been rigorously examined in the literature. The super exogeneity test results suggest that there exists a robust (or structurally invariant) relationship between capital formation and income growth, thereby giving credence to policy evaluation.

Original languageEnglish (US)
Pages (from-to)67-79
Number of pages13
JournalEconomics of Planning
Issue number1
StatePublished - 1999

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


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