Empirical Research of the Effect of RMB's Real Exchange Rate Volatility on the Balance of Trade Between China and USA
Liu Ye-long
Abstract
Liu Ye-long
Abstract
This paper estimates the effect of RMB's real exchange rate volatility on the balance of trade between China and the USA by monthly date from 1999 to 2009.The result of analysis shows that the RMB's real exchange rate volatility has no long tern co-integration relationship with export and import,and the effect of RMB's real exchange rate volatility on the balance of trade is limited.
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This paper estimates the effect of RMB's real exchange rate volatility on the balance of trade between China and the USA by monthly date from 1999 to 2009.The result of analysis shows that the RMB's real exchange rate volatility has no long tern co-integration relationship with export and import,and the effect of RMB's real exchange rate volatility on the balance of trade is limited.
Key concepts: Renminbi, Volatility (finance), Balance of trade, Exchange rate, Economics, China, Effective exchange rate, International economics