International Journal of Frontiers in Sociology, 2020, 2(4); doi: 10.25236/IJFS.2020.020404.
Mingming Li
Central European University, Department of Economics and Business, Nador u. 9, 1051 Budapest, Hungary, (36)706705211
[email protected]
This study explores the relationship between renminbi (RMB) exchange rate and the Sino–US trade balance. We firstly describe the relationship between exchange rate and trade volume through background introduction and literature review. After collecting public data, cointegration test and error correction model were used to conclude that RMB exchange rate is not the cause of Sino–US trade imbalance, and the Granger UK test was used to reinforce this conclusion. Lastly, we use summary and analysis to provide directions and requirements for future research.
US–China trade, Renminbi, exchange rate, empirical study, ECM model
Mingming Li. Does RMB Exchange Rate Cause the Sino–US Trade Imbalance?——Empirical Study Based on Data from 1995 to 2015. International Journal of Frontiers in Sociology (2020), Vol. 2, Issue 4: 25-32. https://doi.org/10.25236/IJFS.2020.020404.
[1] Handley, K. and Limão, N., 2013. Policy uncertainty, trade and welfare: theory and evidence for China and the US (No. w19376). National Bureau of Economic Research.
[2] Marwah, K. and Klein, L.R., 1996. Estimation of J-curves: United states and canada. Canadian Journal of Economics, pp.523-539.
[3] Monarch, R., 2014. 'It's Not You, It's Me': Breakups in US-China Trade Relationships.
[4] Miles, M.A., 1979. The effects of devaluation on the trade balance and the balance of payments: some new results. Journal of Political Economy, 87(3), pp.600-620