Oil price shocks, economic policy uncertainty and China’s producer price index: Evidence from quantile regression analysis

Yun Qin and Zitao Zhang

The North American Journal of Economics and Finance, 2025, vol. 77, issue C

Abstract: Oil price shocks have a significant impact on various sectors of the national economy and, together with the accompanying economic policy uncertainty, cause price fluctuations in different industries. Relying on the monthly data from February 2006 to June 2018, we explore the effects of oil price shocks and economic policy uncertainty on China’s producer price index (PPI) by employing the quantile regression model. The study reveals that oil price shocks have significantly positive impacts on China’s PPI under various quantiles, and the impacts depend on negative oil price shocks rather than positive oil price shocks, indicating the asymmetric effects of oil price shocks. Economic policy uncertainty has significantly negative effects on China’s PPI at the low quantiles, while it exerts significantly positive effects on China’s PPI at the high quantiles. The four types of economic policy uncertainty have different impacts on China’s PPI, and the impacts of fiscal policy uncertainty and trade policy uncertainty are relatively larger, indicating the heterogeneous impacts of different types of economic policy uncertainty. In addition, the effects of oil price shocks and economic policy uncertainty on classified PPI are diverse.

Keywords: Oil price shocks; Economic policy uncertainty; Producer price index; Quantile regression (search for similar items in EconPapers)
JEL-codes: E31 E60 Q43 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062940825000397
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:ecofin:v:77:y:2025:i:c:s1062940825000397

DOI: 10.1016/j.najef.2025.102399

Access Statistics for this article

The North American Journal of Economics and Finance is currently edited by Hamid Beladi

More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().