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Appreciation of the renminbi and urban-rural income disparity

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  • Sylviane Guillaumont Jeanneney

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Ping Hua

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Sylviane Guillaumont Jeanneney & Ping Hua, 2011. "Appreciation of the renminbi and urban-rural income disparity," Working Papers halshs-00556694, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00556694
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00556694
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    References listed on IDEAS

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    1. Bourguignon, Francois & de Melo, Jaime & Morrisson, Christian, 1991. "Poverty and income distribution during adjustment: Issues and evidence from the OECD project," World Development, Elsevier, vol. 19(11), pages 1485-1508, November.
    2. Sylviane GUILLAUMONT JEANNENEY & Ping HUA, 1999. "Taux de change réel, industrialisation et biais urbain en Chine," Working Papers 199909, CERDI.
    3. 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.
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    Cited by:

    1. Jinzhao Chen, 2015. "Interprovincial Competitiveness and Economic Growth: Evidence from Chinese Provincial Data (1992–2008)," Pacific Economic Review, Wiley Blackwell, vol. 20(3), pages 388-414, August.
    2. Jinzhao Chen, 2012. "Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 - 2008)," PSE Working Papers halshs-00667467, HAL.

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    Keywords

    income inequality; real exchange rate; China; Urban-rural inequality;
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