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Published: 2021-07-14
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DOI: https://doi.org/10.52932/jfm.vi63.161
Issue
No. 63 (2021)
Section
Research Articles
How to Cite
Oanh, T. T. K., Uyên, V. B. T., & Minh, N. B. (2021). THE IMPACT OF CHINA’S MONETARY POLICY ON THE ASEAN ECONOMIC. Journal of Finance and Marketing, 63(3), 26-42. https://doi.org/10.52932/jfm.vi63.161

THE IMPACT OF CHINA'S MONETARY POLICY ON THE ASEAN ECONOMIC

Tran Thi Kim Oanh1, Vu Bao Tu Uyen1, Nguyen Binh Minh2
1 University of Finance - Marketing
2 Finance Department of Long An Province

Main Article Content

Abstract

The paper examines the impact of China's monetary policy on Southeast Asian economies from 2000 to 2019, using the Bayes method to estimate the self-regression vector model (Bayesian vector autoregression - BVAR). The research results provide evidence that countries are differently affected by China's monetary policy for their own unique economic characteristics. Particularly, economic growth of countries with floating exchange rate regimes, and high capital flow as well as great degree of trade openness fluctuates in the same direction and tends to sensitively reacts to China’s monetary policy shocks compared to that of countries with fixed exchange rate, low capital and trade openness. Additionally, depending on the characteristics of each group of countries, China's monetary policy positively or inversely affects interest rates or inflation of Southeast Asian countries in which Vietnam’s economic growth reacts slowly, but its inflation and interest rates tend to be more dependent and sensitive to China's monetary policy rather than others of the same Southeast Asian group.

Article Details

Keywords

Monetary policy, BVAR, China, ASEAN

References

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