Appreciation of the renminbi and urban-rural income disparity
Although poverty has been significantly decreased in China over the last twenty years, this decrease has been highly unequal across the provinces and has brought increased disparity in urban and rural per capita income. We studied the impact of exchange rate policy on urban-rural per capita income, which was marked by strong real depreciation before 1994 followed by moderate appreciation before stabilizing. We concluded that in the inland provinces where poverty is hardest, real appreciation has attenuated disparity whereas real depreciation had accentuated disparity. This result argues for a revaluation of the renminbi.
|Date of creation:||17 Jan 2011|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00556694|
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- Sylviane GUILLAUMONT JEANNENEY & Ping HUA, 1999.
"How Does Real Exchange Rate Influence Income Inequality Between Urban And Rural Areas In China?,"
- Guillaumont Jeanneney, S. & Hua, P., 2001. "How does real exchange rate influence income inequality between urban and rural areas in China?," Journal of Development Economics, Elsevier, vol. 64(2), pages 529-545, April.
- Sylviane GUILLAUMONT JEANNENEY & Ping HUA, 1999. "Taux de change réel, industrialisation et biais urbain en Chine," Working Papers 199909, CERDI.
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