Did Chinese Outward Activity Attenuate or Aggravate the Great Recession in Developing Countries?

Bastian Gawellek, Jingjing Lyu and Bernd Süssmuth

No 5735, CESifo Working Paper Series from CESifo

Abstract: Using data on Chinese large-scale overseas investment and project contracts by sector, we analyze whether Chinese outward activity (COA) before the crisis worsened or alleviated the contractionary phases in developing countries. We find that, on average, COA did not increase vulnerability to the global recession. However, both the sectoral targeting and the size of the pre-crisis engagement matter: While COA in clearly to financial markets tied sectors implied an aggravation, substantial precrisis investment in the energy, metals and transportation industries implied an attenuation of the slump.

Keywords: global crisis; offshoring; developing countries; sectoral transmission (search for similar items in EconPapers)
JEL-codes: F20 F30 F40 F63 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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