How International Financial Crisis Affects Industries in Beijing, Capital City of China

Authors

Renmin University of China, Beijing, China

Abstract

 Beijing’s industrial structure is service-oriented with a high degree of economic openness, and GDP has maintained rapid growth. This paper analyzes the international financial crisis and the impact of China’s anti-crisis policies on Beijing’s economic development as well as its transmission mechanism. Impact Index (excluding seasonal factors) and ARMA Model are employed in the empirical study which involves the crisis affection on output and stability of Beijing’s top ten industries. Such conclusions are revealed: Beijing’s GDP losses more than 10% compared with its potential value the growth rates of over 70% industries are decreasing in Beijing shocks in financial and real estate are intensified. In the anti-crisis process, manufacturing, real estate, scientific research, technical services, geological prospecting, transportation, storage and postal industry have gained significant growing opportunities.  JEL Classification: G01, L80

Keywords