Does the economic integration of China affect growth and inflation in industrial countries?

Christian Dreger and Yanqun Zhang

Economic Modelling, 2014, vol. 38, issue C, 184-189

Abstract: The Chinese economic development affects GDP growth and inflation in the advanced countries. The size of the effects is inferred from multivariate time series and structural econometric methods. In particular, the GVAR and the NiGEM are employed to examine the interdependencies between the business cycles in China and industrial countries, including the US, the euro area and Japan. Evidence is based on the responses to a Chinese GDP shock, which is traced to the recent fiscal stimulus package. The different model environments show quite similar results, implying that the impact on GDP growth in the advanced economies is substantial especially for Japan. Real economic effects to the US and the euro area responses are much lower. In addition, international inflation spillovers should be expected.

Keywords: GVAR; Chinese integration; Shock transmission (search for similar items in EconPapers)
JEL-codes: C51 E32 F15 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999313005671
Full text for ScienceDirect subscribers only

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:eee:ecmode:v:38:y:2014:i:c:p:184-189

DOI: 10.1016/j.econmod.2013.12.018

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().