Canada paper analyses China impact on Latin America


A working paper published by the Bank of Canada on October 4 says the impact of a long-run Chinese-GDP shock on the international transmission of business cycles to Latin America has trebled since the mid-1990s, while the effects of a US-GDP shock has halved during the same period.

The authors, Ambrogio Cesa-Bianchi, Hashem Pesaran, Alessandro Rebucci and TengTeng Xu, find the rising influence of China on Latin American transmissions owes more to the country's new relationship with Latin America

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