IDEAS home Printed from https://ideas.repec.org/p/koe/wpaper/2504.html
   My bibliography  Save this paper

Estimating the International Spillover Effects of China’s Fiscal Policy: A Global VAR Analysis

Author

Listed:
  • Huanhuan Guo

    (Sanda University)

  • Tomomi Miyazaki

    (Kobe University)

Abstract

We examine the international spillover effects of China’s fiscal policy. Global vector autoregressive (GVAR) model is used for this purpose. First, we demonstrate that China’s government spending stimulates private consumption domestically and internationally. Second, we show that an improvement in the general government primary balance by the Chinese government has positive and statistically significant spillover effects on the GDP of several regions. These results imply that while government spending in China is an effective short-term stimulus measure to prop up private consumption when a global economic downturn occurs, fiscal rectitude in China in normal times can be justified in the long run from an international perspective.

Suggested Citation

  • Huanhuan Guo & Tomomi Miyazaki, 2025. "Estimating the International Spillover Effects of China’s Fiscal Policy: A Global VAR Analysis," Discussion Papers 2504, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2504
    as

    Download full text from publisher

    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2025/2504.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:koe:wpaper:2504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kimiaki Shirahama The email address of this maintainer does not seem to be valid anymore. Please ask Kimiaki Shirahama to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fekobjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.