nep-cna 2012-07-08 papers

on China

Issue of 2012‒07‒08
one paper chosen by
Zheng Fang
Ohio State University

China's Impact on World Commodity Markets By Shaun K. Roache

China's Impact on World Commodity Markets

By:	Shaun K. Roache
Abstract:	Shocks to aggregate activity in China have a significant and persistent short-run impact on the price of oil and some base metals. In contrast, shocks to apparent commodity-specific consumption (in part reflecting inventory demand) have no effect on commodity prices. Chinaâ€™s impact on world commodity markets is rising but, perhaps surprisingly, remains smaller than that of the United States. This is mainly due to the dynamics of real activity growth shocks in the U.S, which tend to be more persistent and have larger effects on the rest of the world.
Keywords:	China , Commodity markets , Demand , External shocks , Spillovers , Supply ,
Date:	2012–05–08
URL:	http://d.repec.org/n?u=RePEc:imf:imfwpa:12/115&r=cna

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