International Commerce and Information Review (통상정보연구)
- Volume 10 Issue 3
- /
- Pages.355-367
- /
- 2008
- /
- 1598-7604(pISSN)
The Effect of Chinese Price on the Price of Korea, United States, and Japan
중국 물가가 한국.미국.일본의 물가에 미치는 영향
Abstract
The purpose of this study is to estimate and analyse the relationship between Chinese price and the price of Korea, United States, and Japan. First of all, We test for a unit-root for stability of variable. This paper employs GPH cointegration test since the model must be stationary to get the accurate predicted values. The empirical results show that the model is mean-reverting. This paper also applies impulse-response functions to the model. The empirical results show that the price of Korea, United States, and Japan respond positively to the shocks in Chinese price and then decay slowly.