EconPapers    
Economics at your fingertips  
 

From the Middle Kingdom to the United Kingdom: spillovers from China

Robert Gilhooly (), Jen Han (), Simon Lloyd, Niamh Reynolds () and David Young ()
Additional contact information
Robert Gilhooly: Bank of England
Jen Han: Bank of England
Niamh Reynolds: Bank of England
David Young: Bank of England

Bank of England Quarterly Bulletin, 2018, vol. 58, issue 2, 11-20

Abstract: China’s credit boom is one of the largest and longest running ever recorded. Similar credit booms have typically preceded crises in other countries. This article provides an updated assessment of how a shock to the Chinese economy could affect the UK economy via standard transmission channels - such as trade and financial linkages. It then considers how amplification mechanisms, which could plausibly operate in the event of a particularly large shock, could further increase the impact on the UK from an economic crisis within China. We find that the effects via standard channels from a modest fall in Chinese GDP are larger than our previous estimates, primarily due to China’s increasing role in global trade. A more extreme shock which triggers amplification mechanisms - such as a larger financial market reaction - could potentially double the effects from the standard channels alone.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://www.bankofengland.co.uk/quarterly-bulletin ... pillovers-from-china Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:qbullt:0239

Access Statistics for this article

Bank of England Quarterly Bulletin is currently edited by Lindsey Fowler

More articles in Bank of England Quarterly Bulletin from Bank of England Publications Group Bank of England Threadneedle Street London EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Publications Group ().

 
Page updated 2021-04-09
Handle: RePEc:boe:qbullt:0239