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Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 - 2008)

  • Jinzhao Chen

    (PSE - Paris-Jourdan Sciences Economiques - CNRS - Institut national de la recherche agronomique (INRA) - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC), EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics)

This paper studies the convergence, and the role of internal real exchange rate on economic growth in the Chinese provincial level. Using informal growth equation à la Barro [1991] and dynamic panel data estimation, we find conditional convergence among the coastal provinces and among inland provinces. Moreover, our results show that the real exchange rate appreciation has a positive effect on the provincial economic growth.

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Paper provided by HAL in its series PSE Working Papers with number halshs-00667467.

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Date of creation: Feb 2012
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Handle: RePEc:hal:psewpa:halshs-00667467
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