Green food industry and quality of economic growth in China: The positive analysis based on granger causality test and variance decomposition

Abstract

In order to test the impacts of the green industry transformation on the economic development, the article analyzes the relationship between the green food industry development and quality of economic growth, based on the Granger causality test and variance decomposition, using the data from 1996 to 2010 in China. The results show that: in the long run, the relationships between domestic sales, exports and real outputs of the green food industry and the quality of economic growth are stably positive correlation. In the causal relationship term, the relationship between domestic sales, exports and the quality of economic growth shows a positive one-way causal relationship; the relationship between real outputs and the quality of economic growth shows a slight two-way causal relationship. Through variance decomposition analyzing, the results suggest that the promotion effects of domestic sales, exports and real outputs of the green food industry on the quality of economic growth exist a certain differences. In the end, the results are deeply analyzed and discussed. © Maxwell Scientific Organization, 2013.