Real Exchange Rate and Economic Growth: Evidence from Chinese Provincial Data (1992 – 2008)

Pre-print, Working paper: This paper studies the convergence, and the role of internal real exchange rate on economic growth in the Chinese provincial level. Using informal growth equation à la Barro [1991] and dynamic panel data estimation, we find conditional convergence among the coastal provinces and among inland provinces. Moreover, our results show that the real exchange rate appreciation has a positive effect on the provincial economic growth.

Author(s)

Jinzhao Chen

Date of publication
  • 2012
Keywords JEL
F31 O53
Keywords
  • Real Exchange Rate
  • Economic Growth
  • China
  • Generalized method of moments
Internal reference
  • PSE Working Papers n°2012-05
Version
  • 1