How the Changes in Exchange Rate Affect the Chinese Economic Growth?
(2017) NEKP03 20171Department of Economics
- Abstract
- This paper examines how the exchange rate affects Chinese economic growth. First, we go through the literature about exchange rate and how it affects the economic growth. We respectively analyze the transmission mechanism of RMB real effective exchange rate on the impact of Chinese import, export and foreign direct investment. We use the quarterly data from 1994 to 2016 and the method of cointegration test, Granger Causality test. From the test we found that the appreciation of RMB has a negative effect on Chinese economic growth. Further more, the correlation between total export and real effective exchange rate is negative. Meanwhile, the correlation between total import and real effective exchange rate is negative. For FDI, we found... (More)
- This paper examines how the exchange rate affects Chinese economic growth. First, we go through the literature about exchange rate and how it affects the economic growth. We respectively analyze the transmission mechanism of RMB real effective exchange rate on the impact of Chinese import, export and foreign direct investment. We use the quarterly data from 1994 to 2016 and the method of cointegration test, Granger Causality test. From the test we found that the appreciation of RMB has a negative effect on Chinese economic growth. Further more, the correlation between total export and real effective exchange rate is negative. Meanwhile, the correlation between total import and real effective exchange rate is negative. For FDI, we found that the appreciation of RMB will decrease FDI. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8915422
- author
- Fu, Qiong LU
- supervisor
-
- Emre Aylar LU
- organization
- course
- NEKP03 20171
- year
- 2017
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- real effective exchange rate, economic growth, import, export, foreign direct investment.
- language
- English
- id
- 8915422
- date added to LUP
- 2017-06-14 13:51:05
- date last changed
- 2017-06-14 13:51:05
@misc{8915422, abstract = {{This paper examines how the exchange rate affects Chinese economic growth. First, we go through the literature about exchange rate and how it affects the economic growth. We respectively analyze the transmission mechanism of RMB real effective exchange rate on the impact of Chinese import, export and foreign direct investment. We use the quarterly data from 1994 to 2016 and the method of cointegration test, Granger Causality test. From the test we found that the appreciation of RMB has a negative effect on Chinese economic growth. Further more, the correlation between total export and real effective exchange rate is negative. Meanwhile, the correlation between total import and real effective exchange rate is negative. For FDI, we found that the appreciation of RMB will decrease FDI.}}, author = {{Fu, Qiong}}, language = {{eng}}, note = {{Student Paper}}, title = {{How the Changes in Exchange Rate Affect the Chinese Economic Growth?}}, year = {{2017}}, }