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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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 |
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Foreign Institution |
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Digital Repositories |
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World Bank |
topic |
EXCHANGE RATES EXPORT COMPETITIVENESS TRADE TRADE COMPETITION ACCESS TO MARKETS TRADE POLICY CURRENCY POLICY |
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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 |