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Article
Should Chinese Renminbi Be Blamed for Its Trade Surplus: A structural VAR Approach
ECU Publications 2012
  • Zhaoyong Zhang, Edith Cowan University
  • Kiyotaka Sato
Publication Date
1-1-2012
Document Type
Journal Article
Faculty
Faculty of Business and Law
School
School of Accounting, Finance and Economics / Finance, Economics, Markets and Accounting Research Centre
RAS ID
14365
Comments

This article was originally published as: Zhang, Z. , & Sato, K. (2012). Should Chinese Renminbi Be Blamed for Its Trade Surplus: A structural VAR Approach. The World Economy, 35(5), 632-650.

Abstract
During the recent years, the Renminbi (RMB) exchange rate issue has been at the centre of ongoing debate over the source of global current account imbalance, especially with the United States. The objective of this study is to contribute to the current discussion by providing some new evidence on China’s exchange rate policy and the impacts of RMB devaluation/revaluation on China’s trade balance using a structural vector autoregression (VAR) approach. The results indicate that the dynamic effect of exchange rate on China’s trade balance is still very limited and China’s balance of trade is mainly determined by the world demand and its trade performance, with the latter being a result of its successfully maintained comparative advantage.
Disciplines
DOI
10.1111/j.1467-9701.2012.01438.x
Citation Information
Zhaoyong Zhang and Kiyotaka Sato. "Should Chinese Renminbi Be Blamed for Its Trade Surplus: A structural VAR Approach" (2012)
Available at: http://works.bepress.com/zhaoyong_zhang/25/