This paper examines China's influence on price shock transmission in the world oil markets. In this paper, its impact is studied by testing for cointegration, mapping causality using a technique called directed acyclic graphs (DAG), and integrating the results of DAG into an error correction...

China has recently overtaken the US to become the world largest importer of crude oil. In light of this fact, we formally compare contributions of demand shocks from China, the US and the rest of the world. We find that China's influence on the real price of oil has increased over the past two...