The Rmb Real Effective Exchange Rate: An Empirical Study Of Relationship Between Regional Economic Growth Difference

In the context of accelerating the pace of economic globalization and increasing degree of openness of financial sector, as the economic bridge of home and abroad, exchange rate increasingly become the focus of attention. While China’s overall economic is rapid developing, regional economic growth is asymmetric, this phenomenon is more and more apparent. In general, studies of regional economic growth differences are emphasis on the difference of natural endowments, factor mobility and so on. However, for an opening country, we must correctly understand the relationship between exchange rate and regional economic growth. In this paper, considering the real effective exchange rate fluctuations is an important factor to lead to the difference of China’s regional economic growth, using the annual data of east, northeast, west and central areas from1994to2010. Based on Keynesian macroeconomic model, the author made some empirical analysis. Finally, according to the empirical results, make relevant policy recommendations.According to research and analysis, make the following conclusion:①The real effective exchange rate indirectly affect economic growth through three channels, which are import and export, foreign direct investment and the original currency supply.②The impact of the real effective exchange rate of China’s four regional gross domestic product (GDP) is significant, but the influence is not the same degree. The eastern region is the much more damaged areas of the appreciation of RMB.③RMB appreciation will narrow the gap between China’s regional economic growth, on the contrary, the devaluation of the RMB will widen this gap.