China’s Fiscal Stimulus Package for the Current International Crisis: What does 1996–2006 Tell Us?

Jonathan E. Leightner ()
Additional contact information
Jonathan E. Leightner: Johns Hopkins – Nanjing University Center, Nanjing University, Nanjing 210093, China College of Business Administration, Augusta State University, Augusta, Georgia 30904, USA

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2010, vol. 5, issue 1, 1-24

Abstract: This paper uses Bi-Directional Reiterative Truncated Projected Least Squares (BD-RTPLS) to estimate annual ∂GPP/∂G and %∂GPP/%∂G multipliers for China’s 31 provinces between 1996 and 2006 (GPP = Gross Provincial Product and G = government spending in the province). In order to account for the influence of omitted variables, BD-RTPLS produces a separate ∂GPP/∂G and %∂GPP/%∂G estimate for every observation in the data set. I find that ∂GPP/∂G and %∂GPP/%∂G were highest in 1996 while China was drastically cutting government spending to curb inflation, were lowest in 1997 during the Asian Financial Crisis, slowly rose between 1998 and 2004, and then declined some in 2005 and 2006 when the Chinese yuan was slowly appreciating.

Keywords: fiscal policy; China; crises; stimulus (search for similar items in EconPapers)
JEL-codes: E62 E65 N15 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://journal.hep.com.cn/fec/EN/10.1007/s11459-010-0001-8 (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:fec:journl:v:5:y:2010:i:1:p:1-24

Access Statistics for this article

Frontiers of Economics in China-Selected Publications from Chinese Universities is currently edited by LONG Jie

More articles in Frontiers of Economics in China-Selected Publications from Chinese Universities from Higher Education Press
Bibliographic data for series maintained by Frank H. Liu ().