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Exchange Rate Undervaluation and Growth in China

Author

Listed:
  • Vladimir Popov

    (Dialogue of Civilizations Research Institute
    Central Economics and Mathematics Institute of the Russian Academy of Sciences (CEMI RAN))

  • Kwame Sundaram Jomo

    (Khazanah Research Institute)

Abstract

The widely held belief that China’s undervalued exchange rate has been crucial to its rapid industrialization and economic growth over the last four decades is critically qualified and nuanced. In any case, renminbi (RMB) appreciation, rising wages with exhaustion of its labour surplus, growing domestic demand and slowing international trade and growth following the 2008 global financial crisis have reduced China’s economic growth.

Suggested Citation

  • Vladimir Popov & Kwame Sundaram Jomo, 2020. "Exchange Rate Undervaluation and Growth in China," Development, Palgrave Macmillan;Society for International Deveopment, vol. 63(1), pages 120-125, March.
    • Handle: RePEc:pal:develp:v:63:y:2020:i:1:d:10.1057_s41301-020-00248-y
    DOI: 10.1057/s41301-020-00248-y
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    References listed on IDEAS

    as
    1. V. Popov, 2013. "Global Imbalances: An Unconventional View," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 1.
    2. Dani Rodrik, 2008. "The Real Exchange Rate and Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 365-439.
    3. Surjit S. Bhalla, 2012. "Devaluing to Prosperity: Misaligned Currencies and Their Growth Consequences," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6239, April.
    4. Easterly, William, 2001. "The Lost Decades: Developing Countries' Stagnation in Spite of Policy Reform 1980-1998," Journal of Economic Growth, Springer, vol. 6(2), pages 135-157, June.
    5. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
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    Cited by:

    1. Popov, Vladimir, 2023. "Can China maintain high growth rates under the “dual-circulation” decoupling?," MPRA Paper 117953, University Library of Munich, Germany.

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