Empirical Analysis on China’s Environmental Investment and Economic Growth

Jiahui CHEN, Jingbo WANG


Granger causality test is used in this paper to test the causality relationship between economy growth and environmental investment in China; cointegration test is used to investigate the long-term stable equilibrium relationship of Chinese GDP and environmental investment; vector error model is used to test effect short-term fluctuation of environmental investment has on GDP. According to the empirical result, environmental investment would promote economic growth in China in both short and long term. This paper explains the internal relations of environmental investment and GDP, finally puts forward some advice for the construction of environmental protection in China.


Environmental Investment; Environmental Protection Investment; Cointegration Test; Granger Causality Test; Vector Error Correction Model

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DOI: http://dx.doi.org/10.3968/n


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