Publication Type

Working Paper

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

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://ssrn.com/abstract=2475951

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