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Chinese Journal of Management Science ›› 2015, Vol. 23 ›› Issue (7): 45-52.doi: 10.16381/j.cnki.issn1003-207x.2015.07.006

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Oil Price Shocks and China's Actual Economic Fluctuations——An RBC Model Analysis

CAO Fei   

  1. School of Engineering Management and Real Estate, Henan University of Economics and Law, Zhengzhou 450002, China
  • Received:2013-02-05 Revised:2014-03-24 Online:2015-07-20 Published:2015-07-22

Abstract: As the China's high trade degree of dependence on foreign oil, the external shocks of international oil price fluctuations may have various effects on the China's economy. Here an open economy model is built under the conditions of the real business cycle, by introducing the oil price shocks and technology shocks, the characteristics of China's actual facts of economic fluctuations are explained and the impact of oil price fluctuationsis explored for the Chinese real economy mechanism. Compared to the existing research, this model simulate the Chinese characteristics of the main macroeconomic variables fluctuate better than other models. Meanwhile, the study found that, in addition to the impact of the trade balance, the oil price shocks on the economy also produced a negative impact. Therefore, the energy price reform should follow the principle of gradual and orderly progress, it's to prevent oil price fluctuations have a greater impact on the real economy.

Key words: economic fluctuations, open RBC model, oil price shocks

CLC Number: