The Dynamic Impacts between International Trade and Silver-Copper Ratio in China 1825-1886 ()
ABSTRACT
This study provides an alternative approach to
analyze the linkages between the international trade and the domestic metal
exchange rate in China during the 19th century. I employ a dataset
spanned from 1825 to 1886 to examine the dynamic intra- and inter-relationships
between the domestic silver-copper ratios and the international trade in vector
error correction methods. I obtain that a
long-run relationship between the exports of tea and silk, the imports of
opium, and the domestic silver-copper ratios existed in China. The
silver-copper ratios Granger causes the imported opium, silver inflow and
exported tea from China, but the international trade does not granger cause the
silver-copper ratios. The impacts of impulse response function and variance
decomposition are analyzed. The results suggest a more strong connection from
the international trade and the domestic metal exchange rate than existent
explorations.
Share and Cite:
Hsu, C. (2018) The Dynamic Impacts between International Trade and Silver-Copper Ratio in China 1825-1886.
Modern Economy,
9, 639-651. doi:
10.4236/me.2018.94041.
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