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Yuan Revaluation and China’s External Trade Performance

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  • Fulgence Dominick Waryoba

Abstract

This paper analyzed the effect of Yuan revaluation on China’s external trade performance. Using break point unit root analysis, 1994 has revealed to be the beginning of a new regime for real effective exchange rate implying that Yuan peg to US Dollar really played a central role in influencing real effective exchange rate. Though in the short run real effective exchange rate influence on trade seems unimportant, in the long run the influence is positive and economically significant. Since trade involves more than one country, growth in foreign economic activities influences China’s exports growth the same way as China’s economic growth influences import growth.

Suggested Citation

  • Fulgence Dominick Waryoba, 2018. "Yuan Revaluation and China’s External Trade Performance," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 112-119, June.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:2:p:112-119
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    Keywords

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    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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