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Appreciation of Chinese Yuan and International Trade: The Case of Liaoning, China

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  • Yanjuan CUI
  • Jinghui ZHAO

Abstract

The paper analyzes the relationship between RMB exchange rate and international trade using the data of 1999-2011 of Liaoning, China. The finding shows appreciation of Chinese Yuan has a long run effect on international trade. It can increase the export and decrease the import. And there is unidirectional causal relationship between them. But it has no significant influence on improving surplus in balance of payment, which is maybe related with the processing trade. It is hope to be beneficial to improve development of Liaoning foreign trade.

Suggested Citation

  • Yanjuan CUI & Jinghui ZHAO, 2013. "Appreciation of Chinese Yuan and International Trade: The Case of Liaoning, China," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 1(3), pages 88-92.
    • Handle: RePEc:rss:jnljfe:v1i3p2
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    References listed on IDEAS

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    1. Willem Thorbecke & Gordon Smith, 2010. "How Would an Appreciation of the Renminbi and Other East Asian Currencies Affect China's Exports?," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 95-108, February.
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