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The gains from catch-up for China and the USA: An empirical framework

Citation

Dungey, M and Osborn, DR, The gains from catch-up for China and the USA: An empirical framework, Economic Record pp. 1-16. ISSN 0013-0249 (2020) [Refereed Article]

Copyright Statement

© 2020 Economic Society of Australia

DOI: doi:10.1111/1475-4932.12522

Abstract

As China becomes more closely entwined with the US, positive shocks in the US translate into positive outcomes for China, but the extent of gain for the US during the convergence process is less clear. We develop an empirical framework of two interacting open economies in which Chinese GDP per capita moves towards convergence and cointegration with the US, resulting in a time-varying structural VAR model. As a result, the impulse responses of the two countries to shocks are sensitive to the timing of the shock. The changing e¤ects of US shocks are evident in the analysis, which shows that over the convergence process both the US and China unambiguously bene…t from the catch-up process.

Item Details

Item Type:Refereed Article
Keywords:China, SVAR, convergence, catch-up
Research Division:Economics
Research Group:Applied economics
Research Field:International economics
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
UTAS Author:Dungey, M (Professor Mardi Dungey)
UTAS Author:Osborn, DR (Professor Denise Osborn)
ID Code:140196
Year Published:2020
Deposited By:Economics and Finance
Deposited On:2020-07-31
Last Modified:2020-08-14
Downloads:0

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