Linyue Li1,2

(1. School of International Trade and Economics, Central University of Finance and Economics, Beijing, China;

Claremont Institute for Economic Policy Studies, Claremont Graduate University, California, USA)

 

 

Abstract: This paper aims to study the transmission of business cycle synchronization between China’s economy and world economy for policy implications, under globalization background and “New Normal”, as China is gradually integrating into the world. Starting from macroeconomic data, the study combines the traditional international economic cycle theory, the world economic cycle theory with latest new framework of business cycle model. 

        Considering the characteristics of “New Normal” in China from macroeconomic level to industrial level, the external and internal impact on China's economy and world economy through international trade, international finance or international policy coordination will be one of the concern to do analysis and reveal the importance of the research on the new features of the world economic cycle fluctuations for the coordination of China’s economy and the world economic development. Under the circumstance of sustainable growth in China and world economy, the study of international trade and international financial interdependence will be timely and promising. Accordingly, the research analysis will put forward policy recommendations for China’s response to the new characteristics of world economic cycle fluctuations, which has important theoretical significance and practical application value. International economic policy cooperation is promoted greatly. This paper will also discuss China’s economic relationship with other emerging Asian countries and with major industrial countries, since it would be interesting to investigate the direction and magnitude of growth spillovers and business cycle synchronization between China and other major players in the world economy for policy implications.

 

 

Key words: economic transformation; international trade; international finance; policy implications;

business cycle synchronization

 

JEL codes: E32, F15, F42