An analysis of dynamic econometric relations between Postal and Telecommunication Industry and economic growth in Zhejiang Province

This paper explores the relationship between Postal and Telecommunication Industry(PTI) and economic growth in Zhejiang Province. Some econometric methods such as cointegration, Granger causality tests, Impulse Response Function(IRF) and variance decomposition are used to analyze the data from 1978 to 2009. The results show that economic growth is the Granger causality to PTI in a long term. Economic growth makes great impact on PTI, but PTI makes little impact on economic growth. The change of PTI is intensified by GDP, but weakened by itself. In the end, recommendations are discussed for governments to facilitate PTI and economic growth.