## Investment-Led Growth in China: Global Spillovers

_IMF Working Papers, November 6, 2012_

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## Bibliographic details
- Authors: Ashvin Ahuja, Malhar S Nabar
- Published: November 6, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475556414.001

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### Key findings
- Over the past decade, China’s growth model has become more reliant on investment and its footprint in global imports has widened substantially.
- A one percentage point slowdown in investment in China is associated with a reduction of global growth of just under one-tenth of a percentage point.
- The impact of an investment slowdown on global growth is about five times larger than in 2002.
- The spillover effects register strongly across a range of macroeconomic, trade, and financial variables among G20 trading partners.

### Economies most vulnerable
- Regional supply chain economies tied to China’s production networks face growing risks from a deceleration in investment in China.
- Commodity exporters with relatively less diversified economies are particularly vulnerable to an investment slowdown in China.

### Scope and emphasis
- The note quantifies potential global spillovers from an investment slowdown in China, emphasizing effects on global growth, trade, and financial variables.
- Subject areas covered include: Commodities, Economic sectors, Exports, Imports, Industrial production, International trade, Manufacturing, Production.

*Investment-Led Growth in China: Global Spillovers — By Ashvin Ahuja, Malhar S Nabar, November 6, 2012*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/investment-led-growth-in-china-global-spillovers-40086_