As the global economic landscape evolves and the domestic economic structure undergoes profound adjustments, amid a progressively intricate landscape of both domestic and international economic development, China is striving to enhance its domestic demand while pursuing sustained growth within its own economy, the government executes “dual circulation” new economic development pattern under current economic situation, the pattern encourage the domestic residents’ consumption based on the large population and mitigate the adverse effect of Sino-American trade war. Guangzhou as an important economic center city in China, its domestic market demand and economic growth will bring value to study Chinese economical growth model. The study employs the PVAR model to assess the impact of domestic consumption on Guangzhou’s sustained economic development, utilizing annual statistical data as its empirical foundation. Between 2008 and 2019, comprehensive economic data that was collected from Guangzhou’s eleven districts, covering three major metrics: GDP, cumulative fixed asset investments, and aggregate consumer retail sales; the co-integration test shows that consumption investment can stimulate greater economic development in long-term; the impulse response value of the short-term active promotion of investment is greater than that of consumption on economic growth.

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An Empirical Study of Domestic Demand and Long-Term Economic Growth—Based on an Empirical Study of Guangzhou

  • Xiuzhen Xie,
  • Hongwu Huang,
  • Daliang Sui

摘要

As the global economic landscape evolves and the domestic economic structure undergoes profound adjustments, amid a progressively intricate landscape of both domestic and international economic development, China is striving to enhance its domestic demand while pursuing sustained growth within its own economy, the government executes “dual circulation” new economic development pattern under current economic situation, the pattern encourage the domestic residents’ consumption based on the large population and mitigate the adverse effect of Sino-American trade war. Guangzhou as an important economic center city in China, its domestic market demand and economic growth will bring value to study Chinese economical growth model. The study employs the PVAR model to assess the impact of domestic consumption on Guangzhou’s sustained economic development, utilizing annual statistical data as its empirical foundation. Between 2008 and 2019, comprehensive economic data that was collected from Guangzhou’s eleven districts, covering three major metrics: GDP, cumulative fixed asset investments, and aggregate consumer retail sales; the co-integration test shows that consumption investment can stimulate greater economic development in long-term; the impulse response value of the short-term active promotion of investment is greater than that of consumption on economic growth.