Exchange Rates and Export Structure

Exchange Rates and Export Structure

This paper studies whether changes in the exchange rate affect a country’s export structure, using an arguably exogenous sudden appreciation of renminbi on July 21, 2005 as the main source of identification. Employing combined regression discontinuity and difference-in-differences approach, we show...

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Bibliographic Details
Main Authors: HSU, Wen-Tai, LU, Yi, ZHOU, Yingke
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2014
Subjects:
China
export structure
currency appreciation
regression discontinuity design
difference-in-differences estimation
China’s exchange-rate reform
resource reallocation
Asian Studies
Economics
Finance
Industrial Organization
International Economics
Online Access:https://ink.library.smu.edu.sg/soe_research/1721
https://ink.library.smu.edu.sg/context/soe_research/article/2720/viewcontent/HsuWKeres_092914_withtables.pdf
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Institution: Singapore Management University
Language: English
Description
Summary:This paper studies whether changes in the exchange rate affect a country’s export structure, using an arguably exogenous sudden appreciation of renminbi on July 21, 2005 as the main source of identification. Employing combined regression discontinuity and difference-in-differences approach, we show that China’s export structure became more similar to that of the developed countries after the currency appreciation. We also find that the majority of the appreciation effect comes from the inter-firm resource reallocation rather than the inter-region or intra-firm resource reallocation.

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