The media and policy makers often mention that China manipulates its real exchange rate (RER) in order to improve its exports and boost growth. This view, however, is not supported by the most prominent economic models, which do not predict a positive relationship between real undervaluation and...

This paper elaborates on a method of measuring regional specialization and examines the trend of regional specialization in China, 1987 - 2007. It constructs a simple coefficient incorporating the effect of regional industrial scale, based on location quotients, and then measures the regional...