Purpose – The purpose of this paper is to explore the relationship between China's macroeconomic performance and cyclic political events. Design/methodology/approach – The research is hypothesis‐derived and empirically driven. Findings – In China, economic growth has been largely consistent under different leaderships, and inflation and unemployment tend to be low during the year in which the Communist Party of China convenes its Congress. Research limitations/implications – Further multivariate, time‐series analysis is expected. Practical implications – Periodic adjustments in monetary and fiscal policies will benefit sustainable economic growth and social stability. Originality/value – This is the first empirical work to explore a systematic relationship between cyclic political changes or events and macroeconomic performance in China.
Journal of Chinese Economic and Foreign Trade Studies – Emerald Publishing
Published: Jun 22, 2010
Keywords: China; Macroeconomics; Inflation; Unemployment; Political economy