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2024 | OriginalPaper | Buchkapitel

3. Structural Changes in China–US External Flow of Funds: Statistical Estimates Based on the VEC Model

verfasst von : Nan Zhang, Yiye Zhang

Erschienen in: Global Flow of Funds Analysis

Verlag: Springer Nature Singapore

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Abstract

This study constructs an analytical framework of the external flow of funds (EFF) to observe the process and obstacles of China and the United States (US) decoupling, examining the China–US structural relationship in savings and investment imbalance during 1980–2022. We observe the issues between China and the US in the external financial assets and liabilities by stock data, focusing on the external adjustment mode in 2008–2022. We construct a vector error correction model to calculate the quantitative relationship between short-term fluctuations and long-term trends of the EFF in China and the United States and explore the basic causes of economic conflicts between the two sides. This chapter discusses the risk of China–US economic decoupling and US debt, the strategic challenges both sides face, and the prospect of countermeasures.

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Titel: Structural Changes in China–US External Flow of Funds: Statistical Estimates Based on the VEC Model
verfasst von: Nan Zhang
Yiye Zhang
Verlag: Springer Nature Singapore
Buch: Global Flow of Funds Analysis
Print ISBN: 978-981-9710-28-7

Electronic ISBN: 978-981-9710-29-4

Copyright-Jahr: 2024
DOI: https://doi.org/10.1007/978-981-97-1029-4_3

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