Publication Type
Working Paper
Version
publishedVersion
Publication Date
9-2014
Abstract
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.
Keywords
China, export structure, currency appreciation, regression discontinuity design, difference-in-differences estimation, China’s exchange-rate reform, resource reallocation
Discipline
Asian Studies | Economics | Finance | Industrial Organization | International Economics
Research Areas
International Economics
First Page
1
Last Page
33
Citation
HSU, Wen-Tai; LU, Yi; and ZHOU, Yingke.
Exchange Rates and Export Structure. (2014). 1-33.
Available at: https://ink.library.smu.edu.sg/soe_research/1721
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://ssrn.com/abstract=2475951
Included in
Asian Studies Commons, Finance Commons, Industrial Organization Commons, International Economics Commons