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Appreciation of the renminbi and urban-rural income disparity

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Author Info
Sylviane GUILLAUMONT JEANNENEY () (Centre d'Etudes et de Recherches sur le Développement International)
Ping HUA () (Centre National de la Recherche Scientifique)

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Abstract

Although poverty has been significantly decreased in China over the last twenty years, this decrease has been highly unequal across the provinces and has brought increased disparity in urban and rural per capita income. We studied the impact of exchange rate policy on urban-rural per capita income, which was marked by strong real depreciation before 1994 followed by moderate appreciation before stabilizing. We concluded that in the inland provinces where poverty is hardest, real appreciation has attenuated disparity whereas real depreciation had accentuated disparity. This result argues for a revaluation of the renminbi.

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File URL: http://publi.cerdi.org/ed/2008/2008.24.pdf
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Publisher Info
Paper provided by CERDI in its series Working Papers with number 200824.

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Length: 27
Date of creation: 2008
Date of revision:
Handle: RePEc:cdi:wpaper:1036

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Related research
Keywords: China; Urban-rural inequality; income inequality; real exchange rate;

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This page was last updated on 2009-11-25.


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