An Empirical Analysis of Relative Oil Price Shocks and Chinese Net Processing Exports
This paper studies the effects of Chinese relative domestic oil prices on net processing exports. Using a set of monthly data ranging from 2002 to 2008, we identify a long-run equilibrium cointegrating relationship between the two inflationary series. The unidirectional short-run Granger causality is running from relative oil prices to net processing exports, while in the long-run, the Granger causality is bidirectional. What is noteworthy is that relative oil price shocks have long-run positive effects on Chinese net processing exports, indicating the existence of an energy cost-driven mechanism of endogenous technological change.
Weiguo Pan, Jianxing Ren and Yongguang Li
P. Ma and W. Y. Diao, "An Empirical Analysis of Relative Oil Price Shocks and Chinese Net Processing Exports", Advanced Materials Research, Vols. 347-353, pp. 3098-3102, 2012