Interprovincial Competitiveness and Economic Growth: Evidence from Chinese Provincial Data (1992–2008)

This paper assesses the role of the internal real exchange rate as a competitiveness indicator in economic growth among provinces in China. Using data from 28 Chinese provinces for the period 1992–2008 together with dynamic panel data estimation, the results reveal a positive effect of real exchange rate appreciation on economic growth. In other words, a competitive internal real exchange rate has not been found to support provincial economic growth.