PROJECT PLAN
Title: The Effect of Exchange Rate Reforms in China and Its Implication to Renminbi
Objectives of the Project
The objective of this proposed project is to investigate the valuation of Renminbi exchange rate in order to evaluate whether it is undervalued or overvalued after reforming exchange rate regime during the past decade. Since July 2005, the reform was said to involve a shift away from the fixed exchange rate, a gradual movement towards greater flexibility, and a peg to a basket of currencies. This shows that there is a need to investigate the impact of Renminbi from the exchanges in the exchange rate system.
Literature Review
This will include the review of relevant theories such as the theory of optimum currency areas. It will also include the review of literatures concerning Renminbi and Renminbi exchange rates.
Research Design and Methodology
The research design in the study will be descriptive, meaning it will seek to determine the facts behind the problem. It will follow the positivist research philosophy and will deductive in nature as it will deduce to a particular hypothesis, which is whether or not Renminbi is undervalued or overvalued after the reforms.
Two forms of data collection strategies will be used in this study. The first part is the timeline literature review of the Renmenbi currency, which may also include review of related theories and studies; while the second one is the interview of financial analysts in China to further learn about how the Renmenbi adjusted to the reforms.
Literatures will be acquired from financial journals online and from libraries in universities. On the other hand, interviews will be sought on available financial analysts in China. Interviews are to be conducted formally and responses are to be recorded in an audio-cassette recorder.
The literature review process of (2003) will be used as the framework for the critical literature review. In this process, literature review starts with consulting the Research Questions and Objectives of the study. Then, parameters will be defined and from there, key words will be refined and generated. After that, the literature search will be conducted, obtained, evaluated and recorded. Useful new key words found in the review will be refined and generated again. This will followed by drafting the review and again, back to redefining parameters and generating and refining keywords. The process of literature search will be repeated again twice and then will be written.
The time data for the literatures to be included into the review are only within ten years. This means that literatures that will be included in the study should be published from 1996 to the current year only. This is to enhance the credibility of data and to ensure that information acquired is updated.
On the other hand, the interview will be conducted with 5 financial analysts in China. The purpose of the interview is to be able to collate the views of analysts themselves which is important in evaluating the Renminbi. Open-questions will be asked to the respondents and their responses will be recorded using an audio-cassette recorder. Their responses will be transcribed and parameters will be defined. Key words from the interview will also be generated and refined.
The literature review and the interviews will be transcribed and will be analyzed using qualitative data analysis. First, key themes found in the literature review and key themes found in the interview data will be identified. Both themes will be compared and important phrases will be identified. It is expected that through this process, the study can identify if the Renminbi is undervalued or overvalued after the reforms.
Chapter Outlines
Chapter 1: This chapter will provide the necessary background of the study. It will also introduce the objectives and research questions of the study, its significance as well as a brief discussion of research design and methods to be used.
Chapter 2: This will deal with the literature review of the study. In this chapter, different categories of the reviewed literatures will be segregated. In each category, discussions and brief comments will be provided.
Chapter 3: This chapter will present a complete description of the research design and methodologies to be used in the study. It will provide a complete presentation of how the study has been conducted including the steps in data collection, the difficulties encountered in both data collection and analysis, and the process conducted with the respondents.
Chapter 4: This chapter will provide the presentation of the data acquired in the study. Relevant data from literatures will be quoted in this part. This part will also provide the important points mentioned by the financial analysts’ respondents.
Chapter 5: This chapter will present the results of the study in summarized form. This will also provide the conclusions and the recommendations, as well as the limitations encountered.
Credit:ivythesis.typepad.com
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