Agriculture Reference
In-Depth Information
9 Often quoted is the real effective exchange rate, which is a weighted average of bilateral
real rates
X
+
M
Y
P
=
∑
j
j
R
i
e
E
i
j
Y
P
X
+
M
j
i
i
j
where Xi and Mi are region i's total values of exports and imports, respectively.
10 The analysis by Yang and Tyers (2000, 2001) suggests that the magnitudes of China's
crisis period deflation might be understated by official statistics.
11 A detailed description of the original model is provided by Hertel (1997).
12 The net factor ncome component of the current account s zero at the outset because
that s the assumpton emboded n the constructon of the orgnal database.
13 To see these at least partially offsetting gains in allocative efficiency, it is necessary to
use a multi-commodity, general equilibrium framework such as used in this paper.
14 Interestingly, this pressure has tended to be for a revaluation of the RMB, which would
benefit both Japan and the US in the short run. The shocks we examine yield real
depreciations, however. Were these shocks dominant, we believe the fundamentals are
more likely to support a devaluation of the RMB. A revaluation would be justified only
in the event of Chinese investment demand taking on 'bubble' characteristics, capital
controls notwthstandng.
15 See the discussion on this point by Edwards (2003).
16 See both Roberts and Tyers (2003) and Edwards and Levy-Yeyati (2003).
References
Anderson, K., Huang, J. and Ianchovichina, E., 2002. 'Long-run impact of
China's WTO accession on farm-non-farm income inequality and rural
poverty', Paper presented at World Bank Conference on China's WTO
Accession, Policy Reform and Poverty Alleviation, Beijing, 28-29 June.
Banister, J. and Taylor, J.R., 1989. 'China: surplus labour and migration',
Asia-Pacific Population Journal
, 4(4):3-20.
Bordo, M.D. and Redish, A., 2003.
Is deflation depressing? Evidence from the
classical gold standard
, National Bureau of Economic Research Working
Paper No. W9520, Cambridge, Massachusetts.
Burgess, S. and Mawson, D., 2003.
Aggregate growth and the efficiency of
labour reallocation
, Discussion Paper No. 3848, Centre for Economic
Policy Research, London.
