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Real exchange rate and productivity in China

Author

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  • Sylviane GUILLAUMONT JEANNENEY

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Ping HUA

    (Centre National de la Recherche Scientifique(CNRS))

Abstract

This article investigates the impact that the real exchange rate appreciation in China has exerted on productivity growth since 1994. We remind the arguments explaining a positive or a negative impact of a real appreciation on efficiency and on technical progress. DEA Malmquist indices of productivity growth and of its two components are calculated for twenty-nine Chinese provinces. The econometric estimation shows that the appreciation of the real exchange rate had an unfavourable effect on technical progress but a favourable effect on efficiency growth, and these two effects offset each other partially to give a lesser negative effect on productivity growth.

Suggested Citation

  • Sylviane GUILLAUMONT JEANNENEY & Ping HUA, 2003. "Real exchange rate and productivity in China," Working Papers 200328, CERDI.
    • Handle: RePEc:cdi:wpaper:452
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    Cited by:

    1. Romain Veyrune, 2005. "Le prix de la fixité : Application à l'Union monétaire des Caraïbes orientales et à la Zone franc," Mondes en développement, De Boeck Université, vol. 130(2), pages 63-76.
    2. Hua, Ping, 2007. "Real exchange rate and manufacturing employment in China," China Economic Review, Elsevier, vol. 18(3), pages 335-353.
    3. Ping HUA, 2004. "Compétitivité-prix des exportations chinoises sur les marchés des pays industrialisés," Working Papers 200417, CERDI.
    4. Zheng, Jinghai & Bigsten, Arne & Hu, Angang, 2009. "Can China's Growth be Sustained? A Productivity Perspective," World Development, Elsevier, vol. 37(4), pages 874-888, April.
    5. Sylviane GUILLAUMONT JEANNENEY & PING HUA & ZHICHENG LIANG, 2006. "Financial Development, Economic Efficiency, And Productivity Growth: Evidence From China," The Developing Economies, Institute of Developing Economies, vol. 44(1), pages 27-52, March.

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