부산대학교 도서관

Recently, researches on the real exchange rate are mostly based on the balassa-samuelson effect. However, the proposition that whether the balassa-samuelson effect is significant or not in China is still under debate. As a matter of fact, an agreement has not been reached up to now. Due to this, this paper will focus on that whether the balassa-samuelson effect holds or not in China.On the basis of the balassa-samuelson effect, China’s openness (the ratio of Export & import to the gross domestic product) is introduced into this paper. Then, the annual datum from 1985 to 2016 will be employed to analyze the relationship between real exchange rate and China’s relative labor productivity, U.S.’s relative labor productivity & China’s openness under cointegration test. The empirical analysis results show that an increase in China’s relative labor productivity (the ratio of the manufacturing industry to the tertiary industry) will lead to an appreciation of RMB in the long run. Meanwhile, an increase in U.S.’s relative labor productivity (the ratio of the the manufacturing industry to the tertiary industry) or China’s openness will result in a depreciation of RMB in the long run.