Mechanism Analysis of the Balassa-Samuelson Effect on the Relative Price Level Change of China
Supply factor is one of the factors which inducing inflation.For those rapidly growing economies,Balassa-Samuelson Effect is the fundamental theory to explain the increasing of their relative aggregate price level from the viewpoint of supplying side.This paper firstly sets up the framework for analyzing the long-run mechanism of relative aggregate price level evolution for China with the theory of Balassa-Samuelson Effect,then makes a Granger-Causality-test of Balassa-Samuelson Effect for China with a sample period from 1982 to 2009 regarding the United States as the foreign country.The result of the test indicates that Balassa-Samuelson Effect is hold in China.
relative price level changeB-S effectGranger causality test
国家科技期刊平台
NSTL
万方数据
维普
