China's Economic Growth and its Real Exchange Rate

摘要: The shocks that underlie China's comparatively rapid growth include gains in productivity, factor accumulation and policy reforms increase allocative efficiency. well-known Balassa–Samuelson hypothesis links productivity tradable industries with real appreciations. Yet it relies heavily on the law of one price applying for goods, against which there is now considerable evidence. In its absence, other also affect exchange rate by influencing relative supply or demand home product varieties. This paper investigates pre-conditions to predict a appreciation Chinese case. It then quantifies between all using dynamic model global economy open capital accounts full demographic underpinnings labor supply. results suggest financial inflows most short term, while differential p...