XU Yingzhi,etc：Energy Consumption, Trade Liberalization and Economic Growth

Abstract：This paper applies a one-step system GMM method with China's 1995-2012 provincial panel data to analyze the relationships among China's energy consumption, trade liberalization and economic growth. The results indicate that energy consumption and trade liberalization have positive effects on economic growth, and the effect of energy consumption is significantly greater than that of trade liberalization. After deducting the outsourcing trade, the relationship between trade liberalization and economic growth has been enhanced. The cross term of trade liberalization and energy consumption has negative effects on economic growth. The relationships among China's energy consumption, trade liberalization and economic growth are different among China's eastern, central and western areas. Specifically, the energy consumption plays a significant role in promoting each area's economic growth, but the effect of trade liberalization on economic growth is not significant in China's central and western areas. Finally, some relevant policies and suggestions are provided according to the results.

Key words： Energy Consumption    Trade Liberalization    Economic Growth    Dynamic Panel

source:Finance & Trade Economics ,No.12,2014