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Abstract

Study of the impact of RMB real exchange rate on zhangzhou’s trade balance

Author(s): Lin Wen

With the monthly data of RMB real effective exchange rate and Zhangzhou’s trade balance from Aug,2006 to Sep,2011, we make empirical analysis of each economic variable relationship through establishing vector regression models. The result indicates that the RMB real effective exchange rate and Zhangzhou’s trade balance has the longterm cointegration relationship, but the relationship is not very significant. In other words, the RMB real exchange rate is not the main factor to affect the Zhangzhou’s trade balance. It’s not obvious to improve the Zhangzhou’s trade balance through exchange rate balance


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