| This thesis assesses the impact of oil price changes on Chinese GDP and unemployment rate, using VECM model to evaluate the impact of temporary and permanent oil price increases on the Chinese economy. Different macro causes have different effects and this result last for several intervals in history data. The empirical results indicate that international crude oil price has negative effects on Chinese GDP, and not significant effects on the unemployment rate. I then suggest what Chinese governments should do to reduce the pressure from higher oil price. |
