Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161619 
Year of Publication: 
2016
Series/Report no.: 
Arbeitspapier No. 10/2016
Publisher: 
Sachverständigenrat zur Begutachtung der Gesamtwirtschaftlichen Entwicklung, Wiesbaden
Abstract: 
China's economy, the second largest in the world, is undergoing a fundamental transition. Its transition from a strong focus on investment and exports towards a larger share of consumption could have important ramifications for China's trading partners. Using China as a case study, this paper deploys a sectoral input-output (IO) analysis to take into account higher-round spillovers from a reduction in import demand or a shift in the composition of the Chinese economy. This approach demonstrates strong indirect effects that exceed by far the initial shock from direct trade links, reflecting China's integration into a closely knit global value chain. The result suggests that the ongoing transition in China will have important effects on the global economy.
Subjects: 
Shock propagation
Trade channel
Input-Output
China
JEL: 
F14
C67
F47
Document Type: 
Working Paper

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