The Real Exchange Rate and Employment in China /

We examine the impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008. In contrast to theoretical predictions, employment in both the tradable and non-tradable sectors contracts following a real appreciation. Our results are robust across different s...

Full description

Bibliographic Details
Main Author: Dao, Mai
Other Authors: Chen, Ruo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2011.
Series:IMF Working Papers; Working Paper ; No. 2011/148
Online Access:Full text available on IMF
LEADER 02014cas a2200253 a 4500
001 AALejournalIMF007261
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781455269464 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Dao, Mai. 
245 1 4 |a The Real Exchange Rate and Employment in China /  |c Mai Dao, Ruo Chen. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2011. 
300 |a 1 online resource (50 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We examine the impact of real exchange rate fluctuations on sectoral and regional employment in China from 1980 to 2008. In contrast to theoretical predictions, employment in both the tradable and non-tradable sectors contracts following a real appreciation. Our results are robust across different sub-samples, levels of sectoral disaggregation, and are more pronounced for regions with higher export exposure. We attribute our findings to the importance of services as intermediate input in exportable production. We test this channel of exchange rate transmission using regional input-output tables linked with employment data at the region-sector level. The results of this paper have important implications for China's labor market adjustment should the Chinese RMB strengthen in the future. To mitigate the costs of short-run labor market adjustment, appropriate demand management and structural reforms in the non-traded sectors should play an important role. 
538 |a Mode of access: Internet 
700 1 |a Chen, Ruo. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2011/148 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2011/148/001.2011.issue-148-en.xml  |z IMF e-Library