The Renminbi Exchange Rate Reform and the Rebalancing of China’s Growth Model
Bibliographic Data
| ID | 13119221 |
|---|---|
| Authors | Jianbo Song (0000-0002-5868-7269, Renmin University of China, corresponding author), Sean P Mackinnon (0000-0003-0921-9589, CNS Research (United States), corresponding author), Songtao Tan (Schlumberger (Ireland), corresponding author) |
| Year | 2015 |
| Volume | 3 |
| Issue | 2 |
| Pages | 144-169 |
| Publication date | 2015-07-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economic and Political Studies (JOURNAL) |
| Journal identifiers | ISSN: 2470-4024 • E-ISSN: 2095-4816 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/20954816.2015.11673834 |
| OpenAlex | W2360460850 |
| Language | EN |
| References cited | 4 |
This paper posits that a proper way to estimate the Renminbi (RMB) exchange rate is to base the evaluation on the Balassa-Samuelson effect, and that the optimal way to facilitate China’s growth model transformation is gradual RMB internationalization and capital account liberalization. Regression estimates show that the gross domestic product per capita growth rate, or the productivity growth rate, has strong explanatory validity when estimating the RMB exchange rate. The findings further assert that, as the growth of gross fixed capital formation slows, and the growth of household consumption speeds up, China’s economic growth will be sustained. The RMB exchange rate regime is one in which gradual reforms must yield to interest rates levels and hence should only be revalued conditionally
Capital (architecture · Capital account · China · Economics · Exchange rate · Exchange-rate regime · Gross domestic product · International economics · Liberalization · Macroeconomics · Monetary economics · Per capita · Productivity · Renminbi · Yield (engineering · Fiscal Policy and Economic Growth · Housing Market and Economics · Monetary Policy and Economic Impact
| Highly cited | No |
|---|