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:
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