The Rise of China and Its Implications for the Global Economy: Evidence from a Global Vector Autoregressive Model

What is it about?

We study effects of China's economic developments on other countries with a global economic model. China has already a large effect on other countries' economic growth, especially if those countries trade a lot with China. Therefore countries in Asia but also in Latin America are affected by Chinese developments. However, it should be noted that the US is still world's largest economy, and therefore its effect on other countries is also the largest.

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