Notice of RetractionThe impact of RMB nominal exchange rate on Sino-US trade balance

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.

This paper studies the impact of RMB nominal exchange rate on Sino-US trade balance. We find that there is a co-integration relationship among Sino-US trade balance, RMB nominal exchange rate, American real income and Chinese real income, and Sino-US trade balance is more sensitive to RMB nominal exchange rate, 1% devaluation in RMB will cause an increase of 5.71% in Sino-US trade balance. We also find that the increase of Chinese real income could not reduce Sino-US trade balance; it is mainly due to Sino-US trade structure. The empirical results show that there is a two-way Granger causality for the American real income and Sino-US trade balance, but there is only one-way Granger causality for RMB nominal exchange rate and Sino-US trade balance, also for Chinese real income and Sino-US trade balance. Sino-US trade balance reflects a longer continuous positive response to RMB nominal exchange rate, that is to say, the RMB devaluation really have a positive impact on Sino-US trade balance, but in our research J-curve effect does not appear.