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Supplemental Material, Zhangchengming_Supplementary_Data for How Could Agronomic Biofortification of Rice Be an Alternative Strategy with Higher Cost-Effectiveness for Human Iron and Zinc Deficiency in China? by Cheng-Ming Zhang, Wan-Yi Zhao, A-Xiang Gao, Ting-Ting Su, Yan-Kun Wang, Yue-Qiang Zhang, Xin-Bin Zhou, and Xin-Hua He in Food and Nutrition Bulletin

This paper estimates time specific values for China's long-run equilibrium exchange rate and develops measures of the direction and extent of misalignment based on a reduced-form real effective exchange rate (REER) model. An appropriately specified long-run equilibrium model is estimated and tested following Johansen and Juselius (1990) procedures, which is then used to construct an estimated time path for long-run equilibrium exchange rate values. Unit root tests indicated that each series can be considered as I (1) and that there was one cointegrating relationship linking the RMB series with its “fundamentals” – openness, money supply, productivity and government spending – with long-run elasticities of (0.41), (0.97), (0.51) and (0.75), respectively. The estimated error-correction model of REER determination showed that during China's latest exchange rate regime (from 2005:Q3) the RMB was under valued by an average of 6.7 percent, which is modest compared to related studies. Estimation of the associated short-run error correction model shows that the error correction term has a statistically significant value of 0.85, implying that the actual real effective exchange rates would converge relatively quickly (just over one quarter, on average) towards their long-run equilibrium level in the absence of central bank intervention.