earticle

영어

This paper conducts VAR model to investigate the different impacts of international oil price shocks on Chinese regional economies heterogeneous in terms of economic growth and income level. The results of impulse responses analysis imply that impacts of oil price shocks on CPI-inflation are not the same across regions even though the overall result is similar with those for national economy: the positive oil price shocks first increase the CPI-inflation, and then lower the CPI-inflation. However, the different impacts are not strongly related with the types of heterogeneity under consideration. The results also show that the different impacts of positive crude oil price shocks on GDP growth have a certain correlation with regional heterogeneity: the impact on GDP growth in low-growth regions lasts longer than that in high-growth regions, and the impact of crude oil price shocks on the GDP growth of Beijing and Shanghai is strongest in the first quarter, earlier than other regions with relatively low income levels. We conclude that Chinese government aims at improving economic growth must not ignore the unique economic characteristics of each province, otherwise it may have unnecessary consequences.