How Much is the Chinese Currency Undervalued? A Quantitative Estimation

Posted: 13 Sep 2004

See all articles by Gene Hsin Chang

Gene Hsin Chang

University of Toledo

Q. Shao

University of Toledo

Abstract

This paper conducts a quantitative estimation for the equilibrium value of the Chinese currency, the RMB. After controlling for heteroskedasticity, we find that the RMB was undervalued by 22.5% in 2001, with a p-value of 0.286. These findings confirm that the RMB was undervalued, although the results are not statistically significant.

Keywords: China, currency value, exchange rate, yuan, valuation, RMB

JEL Classification: F31, C31

Suggested Citation

Chang, Gene Hsin and Shao, Qin, How Much is the Chinese Currency Undervalued? A Quantitative Estimation. Available at SSRN: https://ssrn.com/abstract=588781

Gene Hsin Chang (Contact Author)

University of Toledo ( email )

Department of Economics
Toledo, OH 43606
United States
419-530-4677 (Phone)
419-530-7844 (Fax)

Qin Shao

University of Toledo ( email )

Mail Stop 119, HH 3000
Toledo, OH 43606
United States

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