The bilateral real exchange rates and trade between China and the U.S.

Research output: Contribution to journalArticle

25 Citations (Scopus)

Abstract

This paper examines the impacts of the real exchange rates between the renminbi and the US dollar on the trade between the two countries. Because various tests with the quarterly data from 1986Q1 to 2006Q2 imply a structural break around 1994Q1, the export equations are estimated using the quarterly data from 1995Q1 to 2006Q2. According to the estimation of cointegrating vectors, 1% depreciation of the renminbi raises the Chinese exports to the US by 1.7%, while 1% depreciation of the US dollar raises the US exports to China by around 0.4%.

Original languageEnglish
Pages (from-to)117-127
Number of pages11
JournalChina Economic Review
Volume19
Issue number2
DOIs
Publication statusPublished - 2008 Jun

Fingerprint

China
Real exchange rate
Bilateral
Depreciation
Renminbi
Structural breaks

Keywords

  • Chinese renminbi
  • Cointegration
  • Stability test
  • Structural break
  • Trade between China and the US

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

The bilateral real exchange rates and trade between China and the U.S. / Baak, Saang Joon.

In: China Economic Review, Vol. 19, No. 2, 06.2008, p. 117-127.

Research output: Contribution to journalArticle

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