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Can China Help Lower World Inflation?: A Panel Study

Author

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  • CUNEYT KOYUNCU
  • RASIM YILMAZ

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.

Suggested Citation

  • Cuneyt Koyuncu & Rasim Yilmaz, 2006. "Can China Help Lower World Inflation?: A Panel Study," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 42(2), pages 93-103, April.
    • Handle: RePEc:mes:emfitr:v:42:y:2006:i:2:p:93-103
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    Cited by:

    1. Nagayasu, Jun, 2009. "Regional Inflation in China," MPRA Paper 24722, University Library of Munich, Germany.

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