Does Commodity Clustering Mitigate Imported Inflation?Evidence from Xinjiang's Electrolytic Aluminum Industry
Shocked by a series of major international events,global commodity prices have exhibited significant volatility,posing a considerable risk of imported inflation for China.Developing industrial clusters of commodities based on regional resource endowments may be a feasible strategy to address this problem,but its empirical impact has not yet been demonstrated.This study develops an inter-regional input-output price model,integrating econometric models and the hypothetical extraction method,to construct a comprehensive framework for assessing imported inflation.Us-ing this framework,the mitigating effects of Xinjiang's electrolytic aluminum industry clustering on imported inflation is explored.The empirical results indicate that,on one hand,the expansion of industrial scale strengthens the overall price level's link-age with international aluminum prices,leading to an increased transmission effect on the producer price index(PPI).On the other hand,the industrial clustering enhances self-sufficiency and pricing power,thereby reducing the domestic price system's sen-sitivity to international market fluctuations.Although the results up to 2017 show that the former mechanism is stronger than the latter,in the long term,with re-spect for regional resource endowments and with proper macroeconomic regulation and emergency management policies,the latter impact will be further strengthened,and ultimately mitigating imported inflation.
imported inflationinput-output price modelindustry clusteringXin-jiang electrolytic aluminum industry
万方数据
维普
