Testing the impact of fiscal policies for economic recovery: does monetary policy act as catalytic tool for economic Survival

Baihua Yuan (), Wang Leiling (), Hayot Berk Saydaliev (), Vishal Dagar () and Ángel Acevedo-Duque ()
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Baihua Yuan: Jiangxi University of Finance and Economics
Wang Leiling: Zhengzhou University
Hayot Berk Saydaliev: Suleyman Demirel University
Ángel Acevedo-Duque: Universidad Autónoma de Chile

Economic Change and Restructuring, 2022, vol. 55, issue 4, No 8, 2215-2235

Abstract: Abstract This study seeks to evaluate the efficacy of macroeconomic revamping policies operationalized after the pandemic by fiscal and monetary regulators to fight the pandemic in China. This study aims to assess what the Chinese economic recovery implies after the pandemic regarding economic expansion and energy consumption of different economies utilizing an econometric approximation relying on data throughout the COVID-19 phase. Within the extended stage, Chinese economic development spillover impacts attain the same effect on upper-middle-income nations' economic expansion of 0.18 percent, next to the economic development, of lower-middle-income countries of 0.15 percent and high-income nations. We discover proofs of robust direct provincial spillovers, implying that provinces tend to construct a cluster of high-performing and low-performing areas, a procedure that accentuates regional earnings variances. Applying the experience of revamping previous financial crisis, we replicate the impact of the pandemic on the competence of these, and by far, other upper limit income nations to build back better from the pandemic to jobs occasioned by proofs of the pandemic. The spillover impact of China’s economic revival past the pandemic phase's carries a critical effect on the expansion in energy consumption in high-income nations, subsequently middle-income nations. As total factor productivity headwinds underpin economic growth, fiscal policy is the only policy that probably sustains the pollution intensities and concurrently advances household well-being regarding consumption and jobs.

Keywords: Fiscal policies; Monetary policy; Economic recovery; Econometric estimation; China (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10644-022-09383-7

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