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Since the turn of the millennium, China opened up internationally both in terms of its current account (trade) and its … capital account, even though the opening of the latter happened de facto, not de jure. With respect to China being Africa … that capital flows from China to Africa in the form of mainly economic cooperation projects, but also FDI contribute to an …
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vehicle currency. Even though the literature about China is relatively large, no study has scrutinized the asymmetric impacts … of vehicle currency and real effective exchange rate on China’s total trade balance with the entire EU. This research gap …, and USD is the vehicle currency heavily employed in China-EU trade. This article aims to fill the aforesaid gap by …
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We derive a real gravity equation and gain several new insights that were hidden in the nominal specification used so far. Most importantly, the real effective exchange rate (REER) of the exporter and, via the importer's terms of trade, also the importer's REER matter, and we can identify the...
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In this paper we present a new method for estimating market integration under a commodity money system such as that which existed in Europe until the demise of the gold standard. The approach is based on the analysis of deviations between exchange rates and parity, which under conditions of a...
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