The Impacts Of China’s Economic Development On International Oil Prices

This paper examined the impacts of China’s Economic development on international oil prices based on yearly time series from1979to2010, analyzing the empirical results of the Vector Error Correction Model (VECM). We performed ADF test, Johansen’s cointegration test for our exact results. We found that the China’s GDP, the representative data of showing China’s economic development, fails to affect the international oil price, which means that China has not yet had the power to control the international oil prices in the world oil market. We confirmed the T-statistic of China’s GDP transferred to log is not significant through the results.