Estimating the Effects of China’s Output and Monetary Policy Shocks on African Economies

Mutiu Gbade Rasaki ()
Additional contact information
Mutiu Gbade Rasaki: Faculty of Humanities, Management and Social Sciences, Department of Economics, Augustine University, Ilara, Epe, Lagos State, Nigeria

Journal of International Commerce, Economics and Policy (JICEP), 2024, vol. 15, issue 03, 1-18

Abstract: Given the increasing economic ties between African countries and China, this study investigates the effects of China’s output and monetary policy shocks on African countries’ macroeconomic performance for the period 1995q1 to 2021q4. The study formulates and estimates a dynamic stochastic general equilibrium (DSGE) model with the Bayesian technique. The results show that China’s output and monetary policy shocks impact African countries’ macroeconomic performance. The findings indicate that China’s output and monetary policy shocks affect output, inflation and exchange rates in African economies through the trade and financial channels. However, the results show that China’s output shocks have greater impacts on output and inflation while China’s monetary policy shocks have stronger impacts on exchange rate in African countries. The study recommends that African countries should deepen their intra-regional trade, promote economic diversification and monitor China’s business cycles and policies so as to reduce their vulnerabilities to China’s macroeconomic shocks.

Keywords: China; African countries; monetary policy shocks; DSGE; Bayesian technique (search for similar items in EconPapers)
JEL-codes: E52 F41 F42 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1793993324500224
Access to full text is restricted to subscribers

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:wsi:jicepx:v:15:y:2024:i:03:n:s1793993324500224

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1793993324500224

Access Statistics for this article

Journal of International Commerce, Economics and Policy (JICEP) is currently edited by Ramkishen S. Rajan

More articles in Journal of International Commerce, Economics and Policy (JICEP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().