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A Study on the Effect of Real Effective Exchange Rate on TFP in China

Author: LiSiYang
Tutor: FeiJianPing
School: Huazhong University of Science and Technology
Course: Western Economics
Keywords: Real effective exchange rate Total Factor Productivity Technical efficiency Technological advances
CLC: F832.6;F124
Type: Master's thesis
Year: 2009
Downloads: 41
Quote: 0
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Abstract


Balassa - Samuelson effect since 1964 , the domestic and international economic scholars from empirical research on them a lot of testing , test different methods , the economic scholars come to different conclusions , and some conclusions support The Barcelona effect , and some do not support . However, test methods, analysis scholars found that its test is basically based on the classical model of the Barcelona effect , without considering the opposite direction of the Barcelona effect that the impact of the exchange rate on productivity problem . So the opposite direction of the Barcelona effect does not exist ? Based on such a doubt , the paper decided our 1980-2007 annual data for the sample , to explore this issue from the point of view of theoretical and empirical . The main contents of this paper are as follows : First, the theoretical analysis of the possibility of the exchange of technical efficiency and technological progress that total factor productivity impact , based on the theoretical analysis of the impact of the real effective exchange rate of total factor productivity measurement model . Second, the use of data envelopment analysis (DEA) calculate TFP its two decomposition technical efficiency and technological progress , come to the 1980-2007 period , the average growth rate of total factor productivity in China is very limited , and the contribution from the results of technical efficiency improvements . Third, the use of our 1980-2007 annual data and econometric models econometric analysis , measurement results obtained : in the long run , on the one hand , the real effective exchange rate and total factor productivity there is cointegration relationship , on the other hand , the real effective exchange rate through the intermediate variable of foreign direct investment , capital intensity and exports and total factor productivity indirect relationship ; combined Granger causality test , long-term , the real effective exchange rate could be used to cause the total factor productivity with to the negative impact .

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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