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Real Exchange Rate, Foreign Trade and Employment: Evidence from China

Author

Listed:
  • Zeng, Xiangquan

    (Renmin University of China)

  • Yuxue, Cui

    (China Institute of Industrial Relations)

  • Shisong, Qing

    (China Institute for Employment Research)

  • Yumei, Yang

    (Beijing Forestry University)

Abstract
Coordination of macro-economic development and employment is an essential issue for China's social development, which largely depends on economic expansion, as well as integration into the global market to create jobs. Through the literature review and empirical test, this paper analyses the relationship between macro-economic policy and employment, and discusses the impact of real exchange rate and foreign trade on employment. The research indicates that a stable and competitive exchange rate policy plays an indispensable role in employment promotion, more effective than monetary and fiscal policies, while the export growth also plays a positive role in employment promotion.

Suggested Citation

  • Zeng, Xiangquan & Yuxue, Cui & Shisong, Qing & Yumei, Yang, 2011. "Real Exchange Rate, Foreign Trade and Employment: Evidence from China," IZA Discussion Papers 5931, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5931
    as

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    File URL: https://docs.iza.org/dp5931.pdf
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    References listed on IDEAS

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    5. Sebastian Edwards, 1986. "Terms of Trade, Exchange Rates and Labor Markets Adjustment in Developing Countries," UCLA Economics Working Papers 425, UCLA Department of Economics.
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    Cited by:

    1. Leonardo Vera, 2014. "The Simple Post-Keynesian Monetary Policy Model: An Open Economy Approach," Review of Political Economy, Taylor & Francis Journals, vol. 26(4), pages 526-548, October.

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    More about this item

    Keywords

    China; employment; foreign trade; real exchange rate;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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