When and How African Real Exchange Rates Relative to China Affect its Manufacturing

Q4 Economics, Econometrics and Finance
S. G. Jeanneney, Ping Hua
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Abstract

African countries suffer from a low rate of growth of manufacturing production. Many economists consider that it is due to an overvaluation of their currency. Indeed, several African countries have known an appreciation of their currency, notably against the Chines currency. Moreover, Chinese exports of manufactured goods rose between 2000 and 2015 at the astronomic annual rate of 26% (versus 10% for the rest of the world). This article tries to answer the following questions: what is the impact of the real exchange rates of African countries relative to China on African manufacturing? Is it specific? We estimated a manufacturing function by using a panel data of 44 African countries over the period from 2000 to 2015 and GMM estimator. We built an original set of real exchanges rates, weighted by the share of imports of manufactured goods from the ten main partners, globally and by categories of goods. Contrary to the common opinion, we show that African real appreciation of exchange rates relative to China exerts a positive and specific effect on African manufacturing, despite a traditional negative effect through the competition of China’s exports. We assume that this positive effect is due to productivity improvement. First, we reassure this assumption by several theoretical arguments relative to Schumpeterian “creative destruction,” improvement of labor efficiency, increase of capital-labor ratio. Second, by some specificities of imports from China, which are both consumption goods cheap and bottom of the range covering daily needs, and machines and transport equipment easily bought by medium and small enterprises. Naturally, this positive effect disappears with too strong appreciations. By contrast, we do not find the same positive effect for the rest of the world. Our work has clear political implication, as it does not speak in favor of systematic depreciations of African currencies.
非洲相对于中国的实际汇率何时以及如何影响其制造业
非洲国家的制造业生产增长率很低。许多经济学家认为,这是由于他们的货币估值过高。事实上,一些非洲国家的货币已经开始升值,尤其是对人民币。此外,中国制成品出口在2000年至2015年期间以26%的天文数字年增长率增长(而世界其他地区为10%)。本文试图回答以下问题:非洲国家相对于中国的实际汇率对非洲制造业的影响是什么?是具体的吗?我们使用2000年至2015年44个非洲国家的面板数据和GMM估计器估计了制造业函数。我们建立了一套原始的实际汇率,根据从10个主要合作伙伴进口的制成品所占的份额,在全球范围内以及按商品类别加权。与普遍观点相反,我们表明,非洲相对于中国汇率的实际升值对非洲制造业产生了积极而具体的影响,尽管传统上通过中国出口的竞争产生了负面影响。我们假设这种积极的影响是由于生产力的提高。首先,我们通过熊彼特的“创造性破坏”、劳动效率的提高、资本劳动比率的提高等理论论证来验证这一假设。二是从中国进口的一些特点,既包括廉价的低端日用消费品,又包括中小企业容易购买的机器和运输设备。当然,这种积极影响会随着升值力度过大而消失。相比之下,我们在世界其他地区没有发现同样的积极影响。我们的工作具有明显的政治含义,因为它不赞成非洲货币的系统性贬值。
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来源期刊
Journal of economic development
Journal of economic development Economics, Econometrics and Finance-Economics and Econometrics
CiteScore
0.70
自引率
0.00%
发文量
0
期刊介绍: The Journal of Economic Development (JED) promotes and encourages research that aim at economic development and growth by publishing papers of great scholarly merit on a wide range of topics and employing a wide range of approaches. JED welcomes both theoretical and empirical papers in the fields of economic development, economic growth, international trade and finance, labor economics, IO, social choice and political economics. JED also invites the economic analysis on the experiences of economic development in various dimensions from all the countries of the globe.
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