Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328865 
Year of Publication: 
2023
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 11 [Issue:] 10 [Article No.:] 240 [Year:] 2023 [Pages:] 1-10
Publisher: 
MDPI, Basel
Abstract: 
This study empirically examines the influence of trade openness on the rate of inflation by focusing on the Chinese economy. The study utilizes data covering the period 1987-2019 and employs the autoregressive distributed lag model (ARDL) for the extraction of results from the designed models. The results of the study indicate that trade openness has indeed impacted the rate of inflation not only negatively but also significantly. This means that trade openness could be used as a tool to fight against higher inflation. Similarly, government expenditure, economic growth, exchange rate and money supply positively affect inflation. Money supply and government expenditures positively affect the rate of inflation in the short run. The study has important policy implications for the Chinese economy.
Subjects: 
trade openness
inflation
ARDL
China
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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