THE INFLUENCE OF OIL PRICE SHOCKS ON CHINA’S MACRO-ECONOMY: A PERSPECTIVE OF INTERNATIONAL TRADE

Journal of Governance and Regulation

关键词: Oil Price Shocks;    International Trade;    China’;    s Macro-Economy;   

DOI  :  10.22495/jgr_v4_i4_c1_p5

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This paper is aimed at investigating and understanding the relationship between China’s macro-economy and oil price from a new perspective—the international trade perspective. We find strong evidence to suggest that the increase of China’s price level, resulting from oil price shocks, is statistically less than that of its main trade partners’. This helps us to understand the confused empirical results estimated within the SVAR framework. More specifically, SVAR results suggest that China’s output level is positively correlated with the oil price. Positive correlation between China’s output and oil price shocks presumably results from the drop in China’s relative price induced by oil price shocks, which is inclined to stimulate China’s goods and service exports.

【 授权许可】

CC BY-NC