Notice of RetractionYuan-dollar exchange rate and Chinese export to America: Based on different exchange rate regime

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Using monthly data since 1994 when RMB exchange rate was unified, and adopting the Econometric methodology of Johansen-Juselius´s co-integration analysis, this paper makes a contrastive analysis on the effect of yuan-dollar bilateral RER to Sino-American export during two different exchange rate regime periods, i.e. 1994.1–2005.6 and 2005.7–2009.12. The paper finds that there is a long-term co-integration relationship among Sino-American export, yuan-dollar bilateral RER and American real income during the period of 1994.1–2005.6, where the elasticity coefficients of Sino-American export to yuan-dollar bilateral RER and American real income are 5.53 and 4.76 respectively, on the high side. But there exists no long-run co-integration relationship among Sino-American export, yuan-dollar bilateral RER and American real income during the period of 2005.7–2009.12. So we should not use data within different exchange rate regime periods in studying the effect of exchange rate on foreign trade, otherwise, we will get wrong results.