A comparative analysis on the factors promoting China's economic growth based on demand

摘要

By applying co-integration test and variance decomposition to the quarterly data from Q1 2000 to Q3 2010 , this paper conducts an empirical study on the demand factors that promote the economic growth of China. The conclusions are as follows: consumption, investment and net exports all have influence on China's actual output, among which, consumption makes a greater contribution to the economic growth than investment and net exports. In addition, by studying the time-varying effectiveness, we also notice that consumption has the most effectiveness on stimulating economic growth, while investment is the less and net exports is the least. Based on the above two theories, we put forward some suggestions how to promoteChina's economic growth continually.