Does Devaluation of the Renminbi Improve China’s Balance of Trade?
The objective of this paper is to test the relationship between the exchange value of the renminbi (RMB) and China’s trade balance over the 1991-1996 period. Using some recent econometric techniques designed to evaluate the existence and the direction of causality, we find no evidence to support the hypothesis that the new reformed foreign trade regime has made the balance of trade much responsive to changes in the exchange rate. JEL Classification: F31, F14, P22
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Volume (Year): 51 (1998)
Issue (Month): 3 ()
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