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17 December 2020 Investment Heterogeneity among Sectors and Asymmetric Effects of Monetary Policies: A Case Study of China's Marine Economic Development Demonstration Zone
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Abstract

Chen, Y. and Cheng, Q., 2020. Investment heterogeneity among sectors and asymmetric effects of monetary policies: A case study of China's marine economic development demonstration zone. In: Liu, X. and Zhao, L. (eds.), Today's Modern Coastal Society: Technical and Sociological Aspects of Coastal Research. Journal of Coastal Research, Special Issue No. 111, pp. 198–203. Coconut Creek (Florida), ISSN 0749-0208.

As China's economy enters the “New Normal” monetary policy, an important tool for macroeconomic regulation plays an increasingly important role in balancing supply and demand and ensuring sound and sustained economic growth. The present study divides the monetary policy transmission channels into two categories, namely, the currency channel and the credit channel. Based on the monthly statistics on China's overall economic growth and on the nation's marine economic development demonstration zones from January 2005 to December 2018, empirical approaches of VAR modeling and variance decomposition were applied to evaluate how monetary policies affect the investment decisions of state-owned enterprises and private enterprises in China's marine economic development demonstration zones. The research revealed obvious asymmetry in the monetary policy transmission mechanism. Further research found that the currency transmission channel has a larger impact on the investment decision-making of private enterprises than the credit channel, whereas they have practically an equal impact on the investment decision-making of state-owned enterprises. Targeted measures should be taken to support key areas and weak links in China's marine economic development, and collaborative efforts from multiple parties are needed to optimize the monetary policy transmission mechanism.

©Coastal Education and Research Foundation, Inc. 2020
Yuran Chen and Qingsong Cheng "Investment Heterogeneity among Sectors and Asymmetric Effects of Monetary Policies: A Case Study of China's Marine Economic Development Demonstration Zone," Journal of Coastal Research 111(sp1), 198-203, (17 December 2020). https://doi.org/10.2112/JCR-SI111-034.1
Received: 22 March 2020; Accepted: 27 July 2020; Published: 17 December 2020
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