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An Analysis of the Influence of the Real Exchange Rate of RMB on the Chinese Foreign Trade Dependence Ratio

[Abstract]

The author analyzes previous studies on the Chinese foreign trade dependence ratio first, and then makes the point that the real exchange rate of RMB is the important factor that influences its changes. This paper studies the relations between the real exchange rate and foreign trade dependence by theoretical and empirical analysis, but an opposite phenomenon is found between them. So, the author discusses the trend of Chinese foreign trade dependence research.

[Keywords] Chinese foreign trade dependence ratio; real exchange rate of RMB; empirical analysis

Introduction

Chinese foreign trade underwent a rapid and sustainable growth after reform and opening. From 1978 to 2004 the ...

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