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Structural Changes and Regional Disparity in China's Inflation

Author

Listed:
  • Terence Tai-Leung Chong

    (Hong Kong Institute of Asia-Pacific Studies, The Chinese University of Hong Kong)

  • Ning Zhang

    (Department of Economics, The Chinese University of Hong Kong)

  • Qu Feng

    (Division of Economics, Nanyang Technological University)

Abstract

The inflation problem in China has attracted a great deal of international attention in recent years. This paper examines the time series properties of China's CPI series. It is found that the overall inflation series and the inflation of food, tobacco, clothes, urban transport and urban housing are not persistent. Structural breaks in inflation are found in 2003 and 2004. The degree of rural-urban inflation disparity in China is also investigated. We find evidence that rural residents experience higher inflation than their urban counterparts.

Suggested Citation

  • Terence Tai-Leung Chong & Ning Zhang & Qu Feng, 2011. "Structural Changes and Regional Disparity in China's Inflation," Economics Bulletin, AccessEcon, vol. 31(1), pages 572-583.
    • Handle: RePEc:ebl:ecbull:eb-10-00424
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P55.pdf
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    References listed on IDEAS

    as
    1. Henry, Olan T. & Shields, Kalvinder, 2004. "Is there a unit root in inflation?," Journal of Macroeconomics, Elsevier, vol. 26(3), pages 481-500, September.
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    Cited by:

    1. Aviral Kumar Tiwari & Aruna Kumar Dash & Subhendu Dutta, 2015. "Testing the mean reversion in prices of agricultural commodities in India," Economics Bulletin, AccessEcon, vol. 35(3), pages 1928-1940.

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    More about this item

    Keywords

    Structural Break; Unit Root; ADF Test; Rural and Urban Inflation.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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