| ID | 147443 |
| Title Proper | Rural-led exchange rate appreciation in China |
| Language | ENG |
| Author | Menzies, Gordon ; Xiao, Sylvia Xiaolin ; Dixon, Peter ; Rimmer, Maureen |
| Summary / Abstract (Note) | The departure of a factor in excess supply in a non-traded rural sector leads to a Rural-led Exchange Rate Real Appreciation (RERA), in a dual economy setup. The RERA highlights for the first time a potential link between intra-national factor movements and real exchange rates. In China, where there is excess labor employed in the production of (largely) non-traded rural goods, we attribute around one third of the recent appreciation of the real exchange rate – defined as the relative price of nontradables – to a RERA effect. |
| `In' analytical Note | China Economic Review Vol. 39; Jul 2016: p.15–30 |
| Journal Source | China Economic Review 2016-10 |
| Key Words | China ; Exchange Rates ; Dual Economy ; Balassa–Samuelson Effect |