Can the chinese trade surplus be reduced through exchange rate policy?

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dc.contributor Bank of Finland
dc.contributor.author Garcia-Herrero, Alicia
dc.contributor.author Koivu, Tuuli
dc.date.accessioned 2014-09-22T08:00:22Z
dc.date.available 2014-09-22T08:00:22Z
dc.date.issued 2007
dc.identifier.isbn 978-952-462-860-0
dc.identifier.issn 1456-4564
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/8203
dc.description.abstract This paper shows empirically that China's trade balance is sensitive to fluctuations in the real effective exchange rate of the renminbi, although the size of the surplus is such that exchange rate policy alone will be unable to address the imbalance. One of the main reasons why the reduction in the trade surplus is limited is that Chinese imports are reduced with a real appreciation of the renminbi.By estimating bilateral import equations, we find that it is imports from other Southeast Asian countries which fall.This result reflects the vertical integration of Southeast Asia with China through the 'Asian production network'.We find, in turn, that imports from Germany - which serve China's domestic demand - behave as one would expect, ie they increase with renminbi real appreciation.All in all, our results raise concerns on the impact of renminbi appreciation on Southeast Asia even if regional currencies do not follow the renminbi's upward trajectory. Keywords: China, trade, exports, real exchange rate JEL classification: F1, F14
dc.format.extent 36 s.
dc.language.iso eng
dc.relation.ispartofseries BOFIT Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject Kiina
dc.subject ulkomaankauppa
dc.subject valuuttakurssit
dc.subject vaikutukset
dc.subject valuuttapolitiikka
dc.subject vienti
dc.subject tuonti
dc.subject SP
dc.subject Bofit-kokoelma
dc.subject RP ST
dc.subject RP
dc.subject ylijäämä
dc.title Can the chinese trade surplus be reduced through exchange rate policy?
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408071923
dc.subject.jel F14
dc.series.name BOFIT Discussion Papers
dc.series.year 2007
dc.series.number 6/2007
dc.series.sortingnumber 6
dc.date.publication 19.3.2007
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in Economie Internationale, Volume 116, Issue 4, 2008, Pages 53-92 as China's exchange rate policy and asian trade

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