Chinaâ€™s Economic Growth: International Spillovers
This paper presents some facts on Chinaâ€™s role in the world economy and measures the impact of Chinaâ€™s growth on growth in the rest of the world in the short and long term. Short-run estimates based on VARs and error-correction models suggest that spillover effects of Chinaâ€™s growth have increased in recent decades. Long-term spillover effects, estimated through growth regressions based on panel data, are also significant and have extended in recent decades beyond Asia. The estimates are robust to the effects of global and regional shocks, changes in model specification, and sample period.
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