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Meta‐Analysis of Chinese Business Cycle Correlation
Author(s) -
Fidrmuc Jarko,
Korhonen Iikka
Publication year - 2018
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12173
Subject(s) - business cycle , china , economics , decoupling (probability) , correlation , econometrics , chinese economy , positive correlation , financial economics , macroeconomics , political science , mathematics , engineering , control engineering , medicine , law , geometry
We review previous research on China's business cycle correlation with other economies applying meta‐analysis. We survey 71 papers analysing the different periods of Chinese economic development since the 1950s that were published in English or Chinese. We confirm that Pacific Rim economies in particular have relatively high business cycle correlation with China. It appears that many characteristics of the studies and authors influence the reported degree of business cycle synchronization. For instance, Chinese‐language papers report higher correlation coefficients. Despite this, we do not detect robust evidence for publication bias in the papers. Moreover, we show that the broad evidence does not confirm the popular decoupling hypothesis.