Interprovincial competitiveness and economic growth: Evidence from Chinese provincial data (1992–2008)

Abstract 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 report a positive effect of real exchange rate appreciation on economic growth. In other words, a competitive internal real exchange rate has not been found supporting provincial economic growth.