Impact of the People's Republic of China's Growth Slowdown on Emerging Asia: A General Equilibrium Analysis
24 Pages Posted: 26 Mar 2016
Date Written: March 25, 2016
As an important global and regional economic power, the PRC’s growth slowdown may cause large spillover effects to its neighboring economies. Using a multi-sectoral global computable general equilibrium model, this paper quantitatively investigates the impacts of a growth slowdown in the PRC for emerging Asian economies through trade linkages. The results suggest that a growth slowdown of 1.6 percentage points in the PRC would bring about a growth deceleration of 0.26 percentage points in developing Asia as a whole. However, the impacts vary dramatically by economy within developing Asia, reflecting their difference in economic and trade structure.
Keywords: People’s Republic of China, economic slowdown, spillover effects, emerging economies
JEL Classification: C68, F44, F47, F62
Suggested Citation: Suggested Citation