The International Oil Price Changes, The Characteristics And Impact Of Macroeconomic Shocks In China

After the 2^nd petroleum crisis happening in western world, economical scientists paid much more attention to the mechanism of how the change of petroleum price can take impact on macro economy of the countries. Specifically in China, it is common sense that China has achieved rapid economical growth while keeping remarkably high energy consumption rate and energy dependence based on the regulation of government pricing mechanism. This feature demonstrates that the relationship between energy price and economy in China is different from other countries around the world. This article uses VAR model in virtue of the only route by which international petroleum price can influence China's economy to have research on how the international petroleum price can take impact on the key aspects of China's economy. After research it is demonstrated the cointegration between international petroleum price and key indexes of China's economy, as well as the lag mechanism of China petroleum pricing mechanism. At last, the article suggests several regulation innovations: improving energy market, establishing country petroleum storage and developing capital market especially petroleum futures market.