Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi

This paper estimates the effect of China's exchange rate changes on exports of developing countries in third markets. The degree of competition between China and its developing country competitors in specific products and destinations plays a key role in the identification strategy. The strateg...

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Main Authors:	Mattoo, Aaditya, Mishra, Prachi, Subramanian, Arvind
Format:	Journal Article
Published:	American Economic Association 2017
Subjects:	EXCHANGE RATES EXPORT COMPETITIVENESS TRADE TRADE COMPETITION ACCESS TO MARKETS TRADE POLICY CURRENCY POLICY
Online Access:	http://hdl.handle.net/10986/29064

id	okr-10986-29064
recordtype	oai_dc
spelling	okr-10986-290642021-05-25T10:54:42Z Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind EXCHANGE RATES EXPORT COMPETITIVENESS TRADE TRADE COMPETITION ACCESS TO MARKETS TRADE POLICY CURRENCY POLICY This paper estimates the effect of China's exchange rate changes on exports of developing countries in third markets. The degree of competition between China and its developing country competitors in specific products and destinations plays a key role in the identification strategy. The strategy exploits variation across exporters, importers, products and time—afforded both by disaggregated trade data and bilateral exchange rates—to estimate this "competitor country effect." There is robust evidence of a statistically and quantitatively significant effect. A 10 percent appreciation of China's real exchange rate boosts a developing country's exports at the product level on average by about 1.5-2.5 percent. 2017-12-20T18:21:52Z 2017-12-20T18:21:52Z 2017-11 Journal Article American Economic Journal: Economic Policy 1945-7731 http://hdl.handle.net/10986/29064 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank American Economic Association Publications & Research :: Journal Article Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	EXCHANGE RATES EXPORT COMPETITIVENESS TRADE TRADE COMPETITION ACCESS TO MARKETS TRADE POLICY CURRENCY POLICY
spellingShingle	EXCHANGE RATES EXPORT COMPETITIVENESS TRADE TRADE COMPETITION ACCESS TO MARKETS TRADE POLICY CURRENCY POLICY Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
geographic_facet	East Asia and Pacific China
description	This paper estimates the effect of China's exchange rate changes on exports of developing countries in third markets. The degree of competition between China and its developing country competitors in specific products and destinations plays a key role in the identification strategy. The strategy exploits variation across exporters, importers, products and time—afforded both by disaggregated trade data and bilateral exchange rates—to estimate this "competitor country effect." There is robust evidence of a statistically and quantitatively significant effect. A 10 percent appreciation of China's real exchange rate boosts a developing country's exports at the product level on average by about 1.5-2.5 percent.
format	Journal Article
author	Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind
author_facet	Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind
author_sort	Mattoo, Aaditya
title	Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
title_short	Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
title_full	Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
title_fullStr	Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
title_full_unstemmed	Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi
title_sort	beggar-thy-neighbor effects of exchange rates : a study of the renminbi
publisher	American Economic Association
publishDate	2017
url	http://hdl.handle.net/10986/29064
_version_	1764468405410201600

Beggar-Thy-Neighbor Effects of Exchange Rates : A Study of the Renminbi

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