Cheung, Yin-Wong; Chinn, Menzie; Fujii, Eiji - National Bureau of Economic Research (NBER) - 2009
manufacturing capital stock is accounted for. Thus, the China-US trade balance should respond to real exchange rate and relative …We examine whether the Chinese exchange rate is misaligned and how Chinese trade flows respond to the exchange rate and … is on the order of 10 percent. Second, we find that Chinese multilateral trade flows respond to relative prices -- as …