IMF Working Papers

China's Impacton World Commodity Markets

By Shaun K. Roache

May 1, 2012

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Shaun K. Roache China's Impacton World Commodity Markets, (USA: International Monetary Fund, 2012) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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. China’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.

Subject: Commodities, Commodity markets, Commodity prices, Consumption, Financial markets, Industrial production, National accounts, Prices, Production

Keywords: Business Cycle Fluctuations, Center, China effect, Commodity, Commodity consumption, Commodity group, Commodity inventory, Commodity market, Commodity markets, Commodity price, Commodity price movement, Commodity price variance, Commodity Prices, Consumption, Demand variable, Global, Impact estimate, Impulse Reponses, Industrial production, Oil Price, Price shock, Price variance, Spillovers, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2012/115

  • Stock No:

    WPIEA2012115

  • ISBN:

    9781475503364

  • ISSN:

    1018-5941