Sj. Yao, SECTORAL COINTEGRATION, STRUCTURAL BREAK AND AGRICULTURE ROLE IN THE CHINESE ECONOMY IN 1952-92 - A VAR APPROACH, Applied economics, 28(10), 1996, pp. 1269-1279
A VAR model is constructed to study the sectoral cointegration relatio
nship in China. As a primary sector of the economy, agriculture is fou
nd to be a growth engine throughout the data period 1952-92 although i
ts contribution to GDP declined steadily over time. This evidence is c
onsistently found in both the long-run and the short-run models of a V
AR. In contrast, the growth of non-agricultural sectors had little eff
ect on agriculture in 1952-77. However, a structural break is found un
der the economic reforms (1977-92) when industry and other non-agricul
tural sectors started to cause agriculture to grow.