Dual Effect of Exchange Rate Policies and Export Promotion on China’s Economic Growth (1990-2023)

• Post by: Muthanna mjdes
• يناير 8, 2025
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Abstract

The study aims to identify the Chinese economy’s economic variables by studying and analyzing exchange rate and export promotion policies as they directly relate to the country and its external environment. Studying the relationship between currency exchange rates and exports, on the one hand, and exports and economic growth in China, on the other hand, is essential in knowing when devaluing the Yuan exchange rate leads to higher export growth, which helped raise economic growth rates in China. Therefore, the study relied on the hypothesis that “if China comes up with financial policies to reduce the exchange rate of its local currency, we will reflect on the growth of exports, which will cause positive effects on economic development in it.The study based on the Econometric approach showed a long-run integrative equilibrium relationship between the variable following economic growth in China and the independent variables of both the exchange rate and exports. Every single change in the rate of export growth leads to direct changes in China’s gross domestic product (GDP) by the amount of the correction coefficient of (0.28), which is an outcome that is consistent with economic logic. When exports increase, a surplus in the trade balance is achieved to reflect positively on economic growth

مجلة المثنى للعلوم الادارية والاقتصادية, 2024,المجلد 14, العدد 4, الصفحات 143-154

DOI:10.52113/6/2024-14-4/143-154