Can China help lower world inflation?: A panel study

KOYUNCU C., Yilmaz R.

Emerging Markets Finance and Trade, vol.42, no.2, pp.93-103, 2006 (SSCI) identifier

  • Publication Type: Article / Review
  • Volume: 42 Issue: 2
  • Publication Date: 2006
  • Doi Number: 10.2753/ree1540-496x420204
  • Journal Name: Emerging Markets Finance and Trade
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.93-103
  • Keywords: China, Deflation, International trade, Panel study
  • Bilecik Şeyh Edebali University Affiliated: Yes

Abstract

In this paper, the effect of China's imports on importing countries' inflation is examined. Using data from 1994 to 2003, it is argued that China's export surge is an important contributor to lowering inflation in importing countries. Using fixed and random effect models, we identify a statistically significant negative correlation between the share of a country's imports from China and its rate of inflation. © 2006 M.E. Sharpe, Inc. All rights reserved.