The impact of china’s inflation on global economy

Bc. Jiao Chen

Master's thesis

Abstract:

This thesis focusses on the influence of China’s inflation to explore the relationship with international commodity price and global economy performance. To have a better understanding of the relationship between China’s inflation and commodity price, crude oil price will be selected to represent the commodity price. In this thesis, VAR model will be used to measure the data. Variables including China’s inflation, EU inflation, US inflation, World inflation, international crude oil price and world GDP growth rate. Two periods will be found in this thesis- 2009.01 to 2021.12 and 2001 to 2021. The first period is used to explore the relationship between China’s inflation and international crude oil price. The second one is set to find the connection among China’s inflation, word inflation and global GDP growth rate. Based on VAR models results, it can be found that 1. China's inflation has a negative but not significant impact on international crude oil prices, and it is worth mentioning that the EU inflation rate has a more significant negative impact on international crude oil prices. 2. China's inflation has a negative but insignificant effect on global inflation. 3.China's inflation has a negative but insignificant effect on global GDP growth rate. However, the positive effect of EU inflation on global GDP growth rate is close to the level of significance.

Keywords

economy, China, world trade, crude oil price, inflation

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 2. 4. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 28. 5. 2024
• Vedúci: Ing. Ghaeth Fandi, Ph.D.
• Oponent: Soliman Fandie, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management