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Can China Help Lower World Inflation?: A Panel Study

Cuneyt Koyuncu and Rasim Yilmaz

Emerging Markets Finance and Trade, 2006, vol. 42, issue 2, 93-103

Abstract: In this paper, the effect of China's imports on importing countries' inflation is examined. Using data from 1994 to 2003, it is argued that China's export surge is an important contributor to lowering inflation in importing countries. Using fixed and random effect models, we identify a statistically significant negative correlation between the share of a country's imports from China and its rate of inflation.

Keywords: China; deflation; international trade; panel study (search for similar items in EconPapers)
Date: 2006
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