How much does exchange rate volatility affect China's value-added in exports?

Kailan Tian, Yishu Kong, Cuihong Yang*

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademic

2 Citaten (Scopus)
1 Downloads (Pure)

Samenvatting

This paper aims to study how much exchange rate volatility affect China's value-added in exports from the perspective of global value chains. Econometric models are established to estimate the influence of RMB volatility on exports and imports demand. By combining these econometric models with non-competitive input-output model capturing processing trade, this paper further measure the impact of RMB volatility on China's value-added in exports. The results show that RMB volatility not only affect the direct value-added in exports, but also affect the indirect value-added in exports because it affects the substitution of imports for domestic products. Additionally, the results reveal that processing trade mitigate the influence of RMB volatility on value-added in exports. As for the sectors, sectors with higher share of processing trade are less affected. On the contrary, sectors which have higher import price elasticities tend to be more strongly affected.

Originele taal-2English
Pagina's (van-tot)1144-1153
Aantal pagina's10
TijdschriftXitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice
Volume37
Nummer van het tijdschrift5
DOI's
StatusPublished - 1-mei-2017

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