EconPapers    
Economics at your fingertips  
 

China's increasing global influence: Changes in international growth linkages

Erdenebat Bataa, Denise Osborn and Marianne Sensier ()

Economic Modelling, 2018, vol. 74, issue C, 194-206

Abstract: Changes in linkages between growth in the USA, Euro area and China are investigated utilising an iterative procedure for detecting structural breaks in VAR coefficients and disturbance covariance matrix. We find dynamics to be unchanged and, accounting for volatility changes, cross-country correlations are constant until the end of 2007. Although largely isolated from the other large economies until 2007, growth in China is subsequently strongly related to that of the US and the Euro area. The effects are illustrated using generalised impulse responses and forecast error variance decompositions. The increased international synchronisation found may be associated with the effects of the Great Recession on the US and Euro area together with China's extraordinary export growth since joining the World Trade Organisation in 2001.

Keywords: China; International growth; Structural breaks; Globalisation (search for similar items in EconPapers)
JEL-codes: C32 E32 F43 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999317309835
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:74:y:2018:i:c:p:194-206

DOI: 10.1016/j.econmod.2018.05.014

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 ().

 
Page updated 2025-03-31
Handle: RePEc:eee:ecmode:v:74:y:2018:i:c:p:194-206