The Renminbi real exchange rate effects on service employment—— a theoretical analysis and an empirical study
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| Title | The Renminbi real exchange rate effects on service employment—— a theoretical analysis and an empirical study
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| Author | Zhijun Chen and Jianhuai Shi |
| Organization | School of Economics，Peking University |
| Email | 358667202@qq.com；jhshi@pku.edu.cn |
| Key Words | renminbi; real exchange rate; employment |
| Abstract | There are only a few papers concerning about the real exchange rate effects on service employment, most of which are of empirical study. In this paper, a theoretical framework is developed to analyze the RMB real exchange rate effects(short-term or long-run) on the service employment. Both the relationships among production probability frontier, consumer preference, production structure and real exchange rate, and the stability of equilibrium are shown clearly in this framework. Based on theoretical modification on dual economy case, empirical evidence shows that a positive effect of Renminbi real depreciation on the service employment exists. |
| Serial Number | WP794 |
| Time | 2015-01-09 |
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