The Time-varying Impact of China’s Economic Rebalancing on Korea’s Exports to China
Hyunju Kang ()
International Economic Journal, 2018, vol. 32, issue 1, 31-42
Abstract:
While China seeks to shift from exports and investment to a consumption-oriented economy and to increase the self-sufficiency rate of exports, this study uses time-varying parameter vector autoregression (TVP-VAR) to examine the impact of economic structural changes in China on Korea’s exports to China over time. The study results suggest that the impact of China’s export shocks on Korea’s exports has weakened, which demonstrates the slowdown in regional production fragmentation, considering that Korea’s export goods are mainly intermediate goods. Instead, the influence of China’s domestic demand shock on Korea’s exports has expanded, which implies that China has increasingly become the final destination of intermediate goods made in Korea.
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:taf:intecj:v:32:y:2018:i:1:p:31-42
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DOI: 10.1080/10168737.2018.1423628
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