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Assessing the impact of the Chinese stimulus package at home and abroad: A damp squib?

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  • Burdekin, Richard C.K.
  • Weidenmier, Marc D.

Abstract

The November 2008 Chinese stimulus package seemed to provide almost ideal preconditions for governmental success based upon its size, its concentration on infrastructure, accompanying fiscal expansion at the local level, and supportive expansions in bank lending rates. Our sectoral-level analysis suggests that investor reactions were quite tightly focused, however, with Shanghai market outperformance concentrated primarily in the nation's property, construction, and building materials sectors. Further significant post-stimulus gains accrued to the specifically targeted automobile, steel and textile industries. Meanwhile, Chinese company listings in Hong Kong and New York evinced little sectoral outperformance.

Suggested Citation

  • Burdekin, Richard C.K. & Weidenmier, Marc D., 2015. "Assessing the impact of the Chinese stimulus package at home and abroad: A damp squib?," China Economic Review, Elsevier, vol. 33(C), pages 137-162.
  • Handle: RePEc:eee:chieco:v:33:y:2015:i:c:p:137-162
    DOI: 10.1016/j.chieco.2015.01.011
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    References listed on IDEAS

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    Cited by:

    1. Chen, Quanrun & Dietzenbacher, Erik & Los, Bart & Yang, Cuihong, 2016. "Modeling the short-run effect of fiscal stimuli on GDP: A new semi-closed input–output model," Economic Modelling, Elsevier, vol. 58(C), pages 52-63.

    More about this item

    Keywords

    Chinese stimulus package; Stock market reactions; Shanghai; Hong Kong; New York;

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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