The dependence of the Chinese economy on external factors: The impact of exports on economic growth

Abstract

The article characterizes the dynamics and relationship between exports and economic growth in China over the past 20—40 years, determines the export elasticity of GDP, analyzes the structure of China’s GDP by expenditure, and assesses the contribution of total commodity and net exports of goods and services to PRC’s economic growth. Net exports occupy a secondary position in the structure of China’s GDP by expenditure compared to domestic consumption and investment. A comparison of GDP and export dynamics reveals the predominant export inelasticity of China’s growth rate and its high resilience to changes in export volumes. The contribution of exports to China’s economic growth is currently inferior to domestic factors of consumer and investment demand, demonstrating a slight increase in its share in recent years to 30—40% of GDP growth. Overall, exports have a positive stimulating effect on economic growth, they are an important element of China’s national expanded reproduction, and increase domestic consumer and investment demand. Exports ensure technological leadership for the country, which is a priority for further economic development. Imports, investment and technology are other important components of China’s economic dependence on external factors that require further analysis.