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@article{ART002244391},
author={CHEN BIN and Lee Ki-Seong},
title={Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model},
journal={Journal of Asia-Pacific Studies},
issn={1225-8539},
year={2017},
volume={24},
number={2},
pages={265-288},
doi={10.18107/japs.2017.24.2.009}

TY - JOUR
AU - CHEN BIN
AU - Lee Ki-Seong
TI - Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model
JO - Journal of Asia-Pacific Studies
PY - 2017
VL - 24
IS - 2
PB - Institute of Global Affairs
SP - 265
EP - 288
SN - 1225-8539
AB - This paper analyzes dynamic relations between RMB real exchange rate and U.S.-China trade surplus by using the Structural Vector Error Correction Model (SVECM). The results indicate that RMB’s appreciation causes effect to the trade surplus in the short-run and little effect in the long-run. Secondly, The results from the variance decomposition analysis further confirm that the movement of China’s trade balance against the U.S. is attributed largely to the U.S. output shock during the post unification period and even before, while the exchange rate effect does not contribute much. These findings seem to suggest that, after about three-decade reform, the Chinese economic system has been gradually transformed towards a market-originated system under which economic agents have become responsive to market signals to allow changes in exchange rates to influence the trade balance. However, the exchange rate effect on China’s balance of trade is still limited.
KW - RMB Real Exchange Rate;U.S.-China Trade Surplus;Structural Vector Error Correction Model;Impulse Response Function;China
DO - 10.18107/japs.2017.24.2.009
ER -

CHEN BIN and Lee Ki-Seong. (2017). Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model. Journal of Asia-Pacific Studies, 24(2), 265-288.

CHEN BIN and Lee Ki-Seong. 2017, "Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model", Journal of Asia-Pacific Studies, vol.24, no.2 pp.265-288. Available from: doi:10.18107/japs.2017.24.2.009

CHEN BIN, Lee Ki-Seong "Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model" Journal of Asia-Pacific Studies 24.2 pp.265-288 (2017) : 265.

CHEN BIN, Lee Ki-Seong. Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model. 2017; 24(2), 265-288. Available from: doi:10.18107/japs.2017.24.2.009

CHEN BIN and Lee Ki-Seong. "Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model" Journal of Asia-Pacific Studies 24, no.2 (2017) : 265-288.doi: 10.18107/japs.2017.24.2.009

CHEN BIN; Lee Ki-Seong. Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model. Journal of Asia-Pacific Studies, 24(2), 265-288. doi: 10.18107/japs.2017.24.2.009

CHEN BIN; Lee Ki-Seong. Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model. Journal of Asia-Pacific Studies. 2017; 24(2) 265-288. doi: 10.18107/japs.2017.24.2.009

CHEN BIN, Lee Ki-Seong. Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model. 2017; 24(2), 265-288. Available from: doi:10.18107/japs.2017.24.2.009

CHEN BIN and Lee Ki-Seong. "Relationship between RMB Real Exchange Rate and U.S.-China Trade Surplus Using a Structural Vector Error Correction Model" Journal of Asia-Pacific Studies 24, no.2 (2017) : 265-288.doi: 10.18107/japs.2017.24.2.009