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Renminbi's misalignment: A meta-analysis

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  • Bineau, Yannick

Abstract

This paper presents the results of a meta-regression analysis of empirical estimates of renminbi misalignments. Seventeen articles and 130 observations dealing with empirical estimates of the misalignment of Chinese currency are collected. This meta-analysis shows that real exchange rate measures and econometric methodologies have a significant negative impact, whereas data characteristics, dissemination procedures and the underlying theoretical exchange rate models all have significant positive impacts on measures of the misalignment of the Chinese yuan. However, this research shows that empirical methodology induces larger values on the supposed misalignment of Chinese currency than the theoretical model of the real equilibrium exchange rate. Therefore, just one empirical estimate is not sufficient for a full understanding of the misalignment of the renminbi. Instead, a correct evaluation of renminbi misalignment should combine all the theoretical models of real equilibrium exchange rates with various econometric methods.

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  • Bineau, Yannick, 2010. "Renminbi's misalignment: A meta-analysis," Economic Systems, Elsevier, vol. 34(3), pages 259-269, September.
  • Handle: RePEc:eee:ecosys:v:34:y:2010:i:3:p:259-269
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    3. Saadet Kasman & Adnan Kasman & Duygu Ayhan, 2010. "Testing the Purchasing Power Parity Hypothesis for the New Member and Candidate Countries of the European Union: Evidence from Lagrange Multiplier Unit Root Tests with Structural Breaks," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 46(2), pages 53-65, March.
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    6. Yin-Wong Cheung & Wenhao Wang, 2020. "A Jackknife Model Averaging Analysis of RMB Misalignment Estimates," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 1-45, June.
    7. Yin-Wong Cheung & Shi He, 2019. "Truths and Myths About RMB Misalignment: A Meta-analysis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(3), pages 464-492, September.
    8. Enrico Marelli & Marcello Signorelli, 2011. "China and India: Openness, Trade and Effects on Economic Growth," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 129-154, June.
    9. Emmanuel Carré & Jézabel Couppey-Soubeyran & Salim Dehmej, 2015. "La coordination entre politique monétaire et politique macroprudentielle. Que disent les modèles dsge ?," Revue économique, Presses de Sciences-Po, vol. 66(3), pages 541-572.

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