The Renminbi and Poor‐country Growth
AbstractDiscussions on how best to exit from global imbalances to create a more balanced world economy have ignored the impact on poor countries of proposals to redress these imbalances. This paper aims at filling that gap. It gauges the degree of renminbi (RMB) undervaluation; presents evidence on RMB undervaluation and Chinaâs GDP growth rate; surveys the role of the real effective exchange rate â both its level and its stability over time â for underpinning growth in developing countries, especially in large dual economies such as China and India; finally, the paper presents new evidence on growth linkages between China and poor countries for the last two decades and surveys literature on potential displacement effects of RMB appreciation. The analysis allows broad conclusions to be drawn about the potential developing-country beneficiaries and losers from various renminbi adjustment scenarios in the forthcoming years. Les discussions sur la meilleure faÃ§on de sortir des dÃ©sÃ©quilibres mondiaux afin de crÃ©er une Ã©conomie mondiale plus Ã©quilibrÃ©e ont ignorÃ© l'impact sur les pays pauvres des propositions visant Ã corriger ces dÃ©sÃ©quilibres. Le prÃ©sent document vise Ã combler ce manque. Il Ã©value dâabord le degrÃ© de sous-Ã©valuation du renminbi (RMB) ; il dÃ©crit ensuite les Ã©volutions simultanÃ©es du degrÃ© de sous-Ã©valuation du RMB et du taux de croissance du PIB chinois ; puis, il passe en revue le rÃ´le du taux de change effectif rÃ©el - Ã la fois son niveau et sa stabilitÃ© au cours du temps â dans la croissance des pays en dÃ©veloppement, surtout dans les grandes Ã©conomies duales comme la Chine et l'Inde ; enfin, le document prÃ©sente de nouvelles analyses sur les liens, au cours des deux derniÃ¨res dÃ©cennies, entre la croissance chinoise et celle des pays pauvres et passe en revue la littÃ©rature traitant des effets potentiels de l'apprÃ©ciation du RMB sur la croissance. L'analyse permet dâidentifier parmi les pays en dÃ©veloppement, le
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal The World Economy.
Volume (Year): 35 (2012)
Issue (Month): 3 (03)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920
Other versions of this item:
- F15 - International Economics - - Trade - - - Economic Integration
- F31 - International Economics - - International Finance - - - Foreign Exchange
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- PBoC sets the RMB free and it ... falls
by Shifting Wealth in ShiftingWealth on 2012-04-16 09:14:00
- MGG Public Lecture (30 July 2012, at GDI/DIE)
by Shifting Wealth in ShiftingWealth on 2012-07-29 12:43:00
- Toward Shifting Wealth Phase II
by Shifting Wealth in ShiftingWealth on 2012-08-10 14:06:00
- Global Rebalancing: A Modest Role for the RMB
by Shifting Wealth in ShiftingWealth on 2011-05-18 12:42:00
- The world now grows in Fosbury style
by Shifting Wealth in ShiftingWealth on 2011-04-05 09:59:00
- Kappler, Marcus & Reisen, Helmut & Schularick, Moritz & Turkisch, Edouard, 2011.
"The macroeconomic effects of large exchange rate appreciations,"
ZEW Discussion Papers
11-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Marcus Kappler & Helmut Reisen & Moritz Schularick & Edouard Turkisch, 2011. "The Macroeconomic Effects of Large Exchange Rate Appreciations," OECD Development Centre Working Papers 296, OECD Publishing.
- Kappler, Marcus & Reisen, Helmut & Schularick, Moritz & Turkisch, Edouard, 2011. "The macroeconomic effects of large exchange rate appreciations," Discussion Papers 2011/3, Free University Berlin, School of Business & Economics.
- Jinzhao Chen, 2012. "Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 - 2008)," Working Papers halshs-00667467, HAL.
- Zhang, Zhibai, 2012. "A simple model and its application in currency valuation," MPRA Paper 40650, University Library of Munich, Germany.
- Jinzhao Chen, 2012. "Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 - 2008)," PSE Working Papers halshs-00667467, HAL.
- Zhibai, Zhang, 2012. "A Simple Model and Its Application in the Valuation of Five Asian Real Exchange Rates," MPRA Paper 40953, University Library of Munich, Germany.
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