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SERIES IZ ADP No. 5931 PAPER Real Exchange Rate, Foreign Trade and Employment: Evidence from China Zen Xiangya Coo Queue Qing Shi song Yang Yuma August 2011 DISCUSSION Forschungsinstitut our Subunit
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11-3, November 29, 2010, Zen Xiangya and colleagues' results are consistent with the expectations of the original findings. They find, for instance, that the share of foreign trade in total GDP is lower in China than in Indonesia (from 1 to 0.7 percent), Malaysia (from 3.2 to 2.5 percent) and the US (from 4.1 to 2.8 percent). Their findings are also consistent with the view that China's trade surplus is a reflection of a higher share of domestically produced inputs in its exports. RAW Paste Data SECTION I: ANTENNAS The use of digital technology offers new opportunities for analyzing time series data of an increasing size. However, the analysis of time series is difficult and requires specialized knowledge of data mining, regression and statistics. We present an easy-to-use method based on mining digital information in text files, to build quantitative measures of the economic activities of the digital generation. To illustrate our analysis, we use a fictitious country with a population of over 5 million people, named “AIW”. We identify “Digital” activities in the digital space such as: (i) data generation, (ii) web based information consumption in electronic media (e.g., Internet) (iii) data transmission over the Internet including file transfer, and (iv) software (e.g., software in the form of software applications) that is used by the digital population (e.g., word processing and data entry software). We build two quantitative measures based on the “Digital” activities. Furthermore, we define “Digital Activities (CA)” as electronic media such as the Internet, and digital software applications in digital media (including downloadable or online software) that generate CA. Because the economic activities of digital generation depend on the technological environment, we use the standard classification of IT infrastructure (IT Infrastructure = Software/networking + Internet, including telecommunications, etc.). To define “Digital Population” (DP) we use the same classification. It includes all those aged 10 and below, and those 30 and above. The digital population is the percentage of the digital population. To define “CA” we use the same measurement, but with a different meaning. According to the classification we use “Digital Activities (DP) — CA” refers to the digital population. We compare CA (Digital Activities (CA)) to the economic activity of the digital generation with respect to GDP.

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The real exchange rate foreign refers to the rate at which one currency can be exchanged for another, taking into account the differences in inflation rates between the two countries.
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