Rural-led exchange rate appreciation in China

Publication Type:
Journal Article
Citation:
China Economic Review, 2016, 39 pp. 15 - 30
Issue Date:
2016-07-01
Full metadata record
Files in This Item:
Filename Description Size
1 Menzies et al Revise and Resubmit China Economic Review.pdfAccepted Manuscript Version478.11 kB
Adobe PDF
© 2016 Elsevier Inc. The departure of a factor in excess supply in a non-traded rural sector leads to a Rural-led Exchange Rate Real Appreciation (RERA), in a dual economy setup. The RERA highlights for the first time a potential link between intra-national factor movements and real exchange rates. In China, where there is excess labor employed in the production of (largely) non-traded rural goods, we attribute around one third of the recent appreciation of the real exchange rate - defined as the relative price of nontradables - to a RERA effect.
Please use this identifier to cite or link to this item: