Estimation of the National Income Function (United States and China): A Comparative Study for the Period (2000-2019)
Keywords:
National income function, linear regression models, U.S. and Chinese economy
Abstract
The research aims to analyze the national income function of the United States and China, considering them the most influential countries in the trade system. It also analyzes the factors behind the development of the Chinese economy over the past few decades. A time series of national income variables for both countries, spanning from 2000 to 2019, was reviewed. The researchers constructed a linear model to estimate both functions using the linear model. The research concluded that China's commercial dominance on the international stage is the result of several factors, including China's implementation of a planned market economy that combines the advantages of capitalism and socialism, as well as the Chinese government's complete control over economic management. Additionally, the flexibility of China's production system and its response to the devaluation of the local currency, the yuan, played a role. However, despite this, the dominance of the U.S. economy in international economic activity remains paramount due to the vast scale of economic operations and activities conducted by the United States.
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30. Wang, Z., Zhang, Y., Niu, M., & Fan, Z. (2021). How important is domestic and foreign demand for China’s income growth by business function? Economic Systems Research. https://doi.org/10.1080/09535314.2020.1792417
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2. Dr. Hamid Al-Jumaili, "Elements of American Economic Strength and Weakness with Special Reference to American Debt," Al-Muntada Journal, Vol. 28, Issue 258, 2013
3. Dr. Ahmed Farouk Abbas, "The Developmental Experience in China - Realities and Challenges," Scientific Journal of Economics and Commerce, 2019.
4. Dr. Mudher Mohammed Saleh, "Evaluation of Economic Disparity Limits Between the U.S. Trade Deficit and the Chinese Trade Surplus: An Economic Analytical Vision," Central Bank of Iraq, 2011.
5. Jamal Jwaidan Al-Jamal, "International Trade," Academic Book Center, Amman, Jordan, 2010, pp. 12-13.
6. Dr. Miranda Zaghlool Rizk, "International Trade," Open Learning Center Benha, 2010, p. 5.
7. "Foreign Trade," Institute of Banking Studies, Kuwait, Eighth Series - Issue 1, 2016, p. 2.
8. Sheikh Hafidha, "Rationalization of Trade Policies for the Positive Integration of Algeria into the Global Economy - World Trade Organization," University of Oran, 2012, p. 3.
9. Iyad Abdul Kareem Majid, "U.S. Foreign Policy Towards West Africa After the Cold War - Nigeria as a Model," Ph.D. Thesis, Al-Nahrain University, College of Political Science, 2008, p. 107.
10. Salim Kati Ali, "The Elements of American Power and Their Impact on the World Order," International Studies Journal, Issue 42, 2017, p. 157.
11. "The Chinese Transformation," World Bank Publications, June 2014, p. 11.
12. Zawawi Zakia, Smouk Nawal, "Readings in the Light of Economic and Developmental Strategy - The Chinese Experience as a Model," Al-Ibdaa Journal, Vol. 12, Issue 1, 2022, p. 89.
13. Alimi, R. S. (2015). Estimating consumption function under permanent income hypothesis: a comparison between Nigeria and South Africa. mpra.ub.uni-muenchen.de. https://mpra.ub.uni-muenchen.de/id/eprint/65787
14. Cadil, J., Vltavska, K., Krejčí, I., Hartman, D., & ... (2017). Aggregate production function and income identity–Empirical analysis. International Journal of …. https://www.academia.edu/download/108306254/dcc3837f9943473b749c4700a02fdfb37118.pdf
15. Daka, L., Fandamu, H., & Sumbye, K. (2016). Estimation of the consumption function under the permanent income hypothesis: Evidence from Zambia. International Journal of …. https://www.researchgate.net/profile/Lincoln-
Daka/publication/316622353_Estimation_of_the_consumption_function_under_the_permanent_income_hypothesis_Evidence_from_Zambia/links/59bd70d8aca272aff2da1256/Estimation-of-the-consumption-function-under-the-permanent-income-hypothesis-Evidence-from-Zambia.pdf
16. Decker, A. L., Duncan, K., Finn, A. S., & Mabbott, D. J. (2020). Children’s family income is associated with cognitive function and volume of anterior not posterior hippocampus. Nature Communications. https://www.nature.com/articles/s41467-020-17854-6
17. Dunn, L. F. (1978). An empirical indifference function for income and leisure. The Review of Economics and Statistics. https://www.jstor.org/stable/1924245
18. Elwakshi, M., & Al-Qudah, A. (2013). Consumption function under the permanent income hypothesis in selected Arab countries. Proceedings of AICS-Social Sciences. https://jurnal.usk.ac.id/AICS-Social/article/view/6151
19. Farahanifard, S. (2018). The Economical Function of the Religion of Islam (the distribution of wealth and income). Qabasat. https://qabasat.iict.ac.ir/article_30426_en.html
20. Kelikume, I., Alabi, F., & Anetor, F. (2017). Nigeria consumption function–an empirical test of the permanent income hypothesis. Journal of Global Economics …. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2977193
21. Kingma, D., & Oskam, A. J. (1987). Measuring income disparities between (and within) farm households and non-farm households by means of the individual welfare function of income. cabidigitallibrary.org. https://doi.org/10.5555/19881854972
22. Monroe, R. (1965). An analytical comparison of various concepts of business income affecting the accounting function of income determination. krex.k-state.edu. https://krex.k-state.edu/bitstream/handle/2097/23541/LD2668R41965M753.pdf?sequence=1
23. Musgrove, P. (1980). Income distribution and the aggregate consumption function. Journal of Political Economy. https://doi.org/10.1086/260883
24. Praag, B. M. S. Van, & Kapteyn, A. (1973). Further evidence on the individual welfare function of income: An empirical investigatiion in The Netherlands. European Economic Review. https://www.sciencedirect.com/science/article/pii/0014292173900299
25. Procházka, D. (2016). Classification Of Expenses In Income Statement: Is There Any Difference Between Nature And Function From The Students’ Point Of View? TOJET. https://www.researchgate.net/profile/David-Prochazka-
4/publication/316936539_Classification_of_expenses_in_income_statement_Is_there_any_difference_between_nature_and_function_from_the_students’_point_of_view/links/599b00a9aca272dff128d5eb/Classification-of-expenses-in-income-statement-Is-there-any-difference-between-nature-and-function-from-the-students-point-of-view.pdf
26. Schmitz, A. (1967). Production function analysis as a guide to policy in low‐income farm areas. Canadian Journal of Agricultural Economics/Revue …. https://doi.org/10.1111/j.1744-7976.1967.tb02399.x
27. Sosnowski, M. (2015). Redistributive function of fiscal policy and the income inequalities among the society. Prace Naukowe Uniwersytetu Ekonomicznego We …. https://www.ceeol.com/search/article-detail?id=296597
28. Susanawati, S., Masyhuri, M., Jamhari, J., & ... (2018). Factors Influencing Income of Shallot Farming in Java Indonesia Using UOP Profit Function Model. … Conference on Food …. https://www.atlantis-press.com/proceedings/fanres-18/25907111
29. Tarigan, R. R. A. (2022). THE EFFECT OF EDUCATION AND INCOME FACTORS IN LAND TRANSFER FUNCTION ON REGIONAL DEVELOPMENT. … International Conference of Science Technology and ….
30. Wang, Z., Zhang, Y., Niu, M., & Fan, Z. (2021). How important is domestic and foreign demand for China’s income growth by business function? Economic Systems Research. https://doi.org/10.1080/09535314.2020.1792417
31. Yoo, M. S., Kim, H. K., Jo, E. M., & Kim, Y. S. (2007). A study on ADL, IADL, and cognitive function of low-income community dwelling elderly. Journal of Korean Academic …. https://koreascience.kr/article/JAKO200703534437154.page
Published
2024-06-26
How to Cite
Al-Khafaji, L. A. (2024). Estimation of the National Income Function (United States and China): A Comparative Study for the Period (2000-2019) . International Journal on Economics, Finance and Sustainable Development, 6(5), 32-46. https://doi.org/10.31149/ijefsd.v6i5.5281
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