| ID | 097255 |
| Title Proper | Relationship between oil price shocks and China's macro-economy |
| Other Title Information | an empirical analysis |
| Language | ENG |
| Author | Du, Limin ; Yanan, He ; Wei, Chu |
| Publication | 2010. |
| Summary / Abstract (Note) | This paper investigates the relationship between the world oil price and China's macro-economy based on a monthly time series from 1995:1 to 2008:12, using the method of multivariate vector autoregression (VAR). The results show that the world oil price affects the economic growth and inflation of China significantly, and the impact is non-linear. On the other hand, China's economic activity fails to affect the world oil price, which means that the world oil price is still exogenous with respect to China's macro-economy in time series sense, and China has not yet had an oil pricing power in the world oil markets. The structural stability tests demonstrate that there is a structural break in the VAR model because of the reforms of China's oil pricing mechanism, thus it is more appropriate to break the whole sample into different sub-samples for the estimation of the model. |
| `In' analytical Note | Energy Policy Vol. 38, No. 8; Aug 2010: p.4142-4151 |
| Journal Source | Energy Policy Vol. 38, No. 8; Aug 2010: p.4142-4151 |
| Key Words | Oil Price Shocks ; Macro - Economy ; China |