Measuring RMB equilibrium exchange rate and misalignment in China: Application of BEER and PEER approaches

References

• Bashier, A. A., and A. J. Siam. 2014. “Immigration and Economic Growth in Jordan: FMOLS Approach.” International Journal of Humanities Social Sciences and Education (IJHSSE) 1 (9): 85–92.
   Google Scholar
• Bayoumi, T., P. Clark, S. Symansky, and M. Taylor. 1994. “Robustness of Equilibrium Exchange Rate Calculations to Alternative Assumptions and Methodologies.” IMF Working Paper 17. Washington, DC: International Monetary Fund.
   Google Scholar
• Bergsten, Fred C. 2010. “Correcting the Chinese Exchange Rate: An Action Plan.” In The US-Sino Currency Dispute: New Insights from Economics, Politics and Law, edited by Simon J. Evenett, 9–14. London: VOX.
   Google Scholar
• Caporale, G. M., T. H. Amor, and C. Rault. 2011. “International Financial Integration and Real Exchange Rate Long-Run Dynamics in Emerging Countries: Some Panel Evidence.” The Journal of International Trade & Economic Development 20 (6): 789–808. https://doi.org/10.1080/09638190903365948.
   Web of Science ®Google Scholar
• Cassel, G. 1918. “Abnormal Deviations in International Exchanges.” The Economic Journal 28 (112): 413–415. https://doi.org/10.2307/2223329.
   Google Scholar
• Chen, Jinzhao Z. 2007. “Behavior Equilibrium Exchange Rate and Misalignment of Renminbi: A Recent Empirical Study.” DEGIT conference papers no. c012_013. DEGIT, dynamics, economic growth, and international trade,, Saint Joseph County, Indiana, United States.
   Google Scholar
• Cheung, Y.-W. 2012. “Exchange Rate Misalignment: The Case of the Chinese Renminbi.” Working Paper 3797. Munich: Center for Economic Studies and ifo Institute (CESifo).
   Google Scholar
• Cheung, Y. W., M. D. Chinn, and E. Fujii. 2010. “China's Current Account and Exchange Rate.” In China's Growing Role in World Trade, 231–271. University of Chicago Press.
   Google Scholar
• Clark, P., and R. Macdonald. 1998. “Exchange Rates and Economic Fundamentals: A Methodological Comparison of BEERs and FEERs.” IMF Working Paper 67. Washington, DC: International Monetary Fund.
   Google Scholar
• Clark, P., and R. MacDonald. 2000. “Filtering the BEER: A Permanent and Transitory Decomposition.” IMF Working Paper 144. Washington, DC: International Monetary Fund.
   Google Scholar
• Cline, W., and J. Williamson. 2012. “Estimates of Fundamental Equilibrium Exchange rates.” Policy Brief 12-14. Washington, DC: Peterson Institute for International Economics.
   Google Scholar
• Coudert, V., and C. Couharde. 2005. “Real Equilibrium Exchange Rates in China.” Working Paper 2005-01. Paris, France: CEPII.
   Google Scholar
• Cui, Y. 2013. “How is the RMB Exchange Rate Misaligned? A Recent Application of Behavioral Equilibrium Exchange Rate (BEER) to China.” East Asian Economic Review 17 (3): 281–310. https://doi.org/10.11644/KIEP.JEAI.2013.17.3.267.
   Google Scholar
• Dickey, D. A., and W. A. Fuller. 1979. “Distribution of the Estimators for Autoregressive Time Series with a Unit Root.” Journal of the American Statistical Association 74: 427–431.
   Web of Science ®Google Scholar
• Driver, R. L., and P. F. Westaway. 2003. “Concepts of Equilibrium Exchange Rates.” Exchange Rates, Capital Flows and Policy, 98–124.
   Google Scholar
• Edwards, S. 1989. “Exchange Rate Misalignment in Developing Countries.” The World Bank Research Observer 4 (1): 3–21. https://doi.org/10.1093/wbro/4.1.3.
   Google Scholar
• Funke, M., and J. Rahn. 2005. “Just How Undervalued is the Chinese Renminbi?” The World Economy 28 (4): 465–489. https://doi.org/10.1111/j.1467-9701.2005.00688.x.
   Web of Science ®Google Scholar
• Gan, C., B. Ward, S. T. Ting, and D. A. Cohen. 2013. “An Empirical Analysis of China’s Equilibrium Exchange Rate: A Co-Integration Approach.” Journal of Asian Economics 29: 33–44. https://doi.org/10.1016/j.asieco.2013.08.005.
   Google Scholar
• Gan, M., and D. Cheng. 2020. “Exchange Rate Appreciation, R&D, and Export Sophistication: Evidence from China.” The Journal of International Trade & Economic Development 29 (2): 237–246. https://doi.org/10.1080/09638199.2019.1657171.
   Web of Science ®Google Scholar
• Giannellis, N., and A. Papadopoulos. 2007. “Estimating the Equilibrium Effective Exchange Rate for Potential EMU Members.” Open Economies Review 18 (3): 307–326. https://doi.org/10.1007/s11079-007-9040-x.
   Web of Science ®Google Scholar
• Hodrick, R., and E. Prescott. 1997. “Postwar U.S. Business Cycles: An Empirical Investigation.” Journal of Money, Credit and Banking 29 (1): 1–16. https://doi.org/10.2307/2953682.
   Web of Science ®Google Scholar
• Iossifov, P., and E. Loukoianova. 2007. “Estimation of a Behaviors Equilibrium Exchange Rate Model for Ghana.” IMF Working Paper 155. Washington, DC: International Monetary Fund.
   Google Scholar
• Johansen, S., and K. Juselius. 1990. “Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money.” Oxford Bulletin of Economics and Statistics 52: 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x.
   Web of Science ®Google Scholar
• Lin, J., and L. Wang. 2009. “An Empirical Study of Balanced RMB Exchange Rate Based on the Modified ERER Model.” Contemporary Finance & Economics 293: 1–58. (in Chinese).
   Google Scholar
• Liu, T., and W. T. Woo. 2018. “Understanding the U.S.-China Trade war.” China Economic Journal 11 (3): 319–340. https://doi.org/10.1080/17538963.2018.1516256.
   Web of Science ®Google Scholar
• Maeso-Fernández, F., C. Osbat, and B. Schnatz. 2001. “Determinants of the Euro Real Effective Exchange Rate: A BEER/PEER Approach.” ECB Working Papers 85. Frankfurt: European Central Bank.
   Google Scholar
• Morrison, W. M., and F. M. Labonte. 2009. “China’s Currency: A Summary of the Economic Issues.” Congressional Research Service 7-5700, Washington, DC. www.crs.gov.
   Google Scholar
• Ng, S., and P. Perron. 2001. “Lag Length Selection and Construction of Unit Root Test with Good Size and Power.” Econometrica 69 (6): 1519–1554. https://doi.org/10.1111/1468-0262.00256.
   Web of Science ®Google Scholar
• Nouira, R., and K. Sekkat. 2015. “What Determines the Extent of Real Exchange Rate Misalignment in Developing Countries?” International Economics 141: 135–151. https://doi.org/10.1016/j.inteco.2015.02.001.
   Google Scholar
• Phillips, P. C. B., and B. E. Hansen. 1990. “Statistical Inference in Instrumental Variable Regression with I (1) Process.” The Review of Economic Studies 57 (1): 99–125. https://doi.org/10.2307/2297545.
   Web of Science ®Google Scholar
• Rano, S. U. 2009. “Real Exchange Rate Misalignment: An Application of Behavioral Equilibrium Exchange Rate (BEER) to Nigeria.” Available at Social Science Research Network.
   Google Scholar
• Razin, O., and S. Collins. 1997. “Real Exchange Rate Misalignments and Growth.” Working Paper 6147. Washington, DC: National Bureau of Economic Research.
   Google Scholar
• Stein, Jerome L. 1994. “The Natural Real Exchange Rate of the US Dollar and Determinants of Capital Flows.” In Estimating Equilibrium Exchange Rates, edited by John Williamson, 133–176. Washington, DC: Institute of International Economics.
   Google Scholar
• Subramanian, A. 2010. “New PPP-based Estimates of Renminbi Undervaluation and Policy Implications.” In Policy Brief 10-8. Washington DC: Peterson Institute for International Economics.
   Google Scholar
• Tao, P., L. Minsoo, and G. Christopher. 2008. “Has Chinese Currency Been Undervalued?” Journal of Chinese Economic and Business Studies 6 (1): 49–66. https://doi.org/10.1080/14765280701841375.
   Google Scholar
• Toulaboe, D. 2016. “Real Exchange Rate Misalignment and U.S. Exports to Asia.” Journal of Applied Business and Economics 18 (3): 103–116.
   Google Scholar
• Wang, Tao. 2004. “Exchange Rate Dynamics.” In China’s Growth and Integration Into the World Economy: Prospects and Challenges, edited by Eswar S. Prasad, 21–28. Washington, DC: International Monetary Fund.
   Google Scholar
• Wang, Y. J., X. F. Hui, and A. S. Soofi. 2007. “Estimating Renminbi (RMB) Equilibrium Exchange Rate.” Journal of Policy Modeling 29 (3): 417–429. https://doi.org/10.1016/j.jpolmod.2006.12.003.
   Web of Science ®Google Scholar
• Williamson, J. 1994. “Estimating Equilibrium Exchange Rates.” In Institute for International Economics, 1–17. Washington, DC.
   Google Scholar
• Woo, T. W. 2008. “Understanding the Sources of Friction in U.S.–China Trade Relations: The Exchange Rate Debate Diverts Attention from Optimum Adjustment.” Asian Economic Papers 7 (3): 61–95. https://doi.org/10.1162/asep.2008.7.3.61.
   Web of Science ®Google Scholar
• Wren-Lewis, Simon. 1992. “The Analytical Foundations of the Fundamental Equilibrium Exchange Rate.” In Macroeconomic Modelling of the Long Run, edited by C. P. Hargreaves, and Edward Elgar, 75–94. Alderhsot, England.
   Google Scholar
• Xiaopu, Z. 2002. “Equilibrium and Misalignment: An Assessment of the RMB Exchange Rate from 1978 to 1999.” Working Paper 127. Stanford, CA: Centre for Research on Economic Development and Policy Reforms, Stanford University.
   Google Scholar
• Zhang, Z. 2001. “Real Exchange Rate Misalignment in China: An Empirical Investigation.” Journal of Comparative Economics 29 (1): 80–94. https://doi.org/10.1006/jcec.2000.1705.
   Web of Science ®Google Scholar
• Zhang, Z. 2010. “Understanding the Behavioral Equilibrium Exchange Rate Model Via Its Application to the Valuation of Chinese Renminbi.” Available at SSRN 2120419.
   Google Scholar
• Zhang, Z., and L. Chen. 2014. “A New Assessment of the Chinese RMB Exchange Rate.” China Economic Review 30: 113–122. https://doi.org/10.1016/j.chieco.2014.06.001.
   Web of Science ®Google Scholar