IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v18y2013i2p318-332.html
   My bibliography  Save this article

The export response to exchange rates and product fragmentation: the case of Chinese manufactured exports

Author

Listed:
  • Nobuaki Yamashita
  • Sisira Jayasuriya

Abstract

This paper examines how changes in the Chinese real exchange rate affect China's exports in the context of global production networks. It highlights the misspecification inherent in conventional export models and the importance of distinguishing between the very different impacts of exchange rate changes relative to export destinations and those relative to sources of parts and components. Our empirical estimates cast further doubts on the effectiveness of Chinese exchange rate adjustments for reducing Chinese export volumes.

Suggested Citation

  • Nobuaki Yamashita & Sisira Jayasuriya, 2013. "The export response to exchange rates and product fragmentation: the case of Chinese manufactured exports," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(2), pages 318-332.
    • Handle: RePEc:taf:rjapxx:v:18:y:2013:i:2:p:318-332
    DOI: 10.1080/13547860.2013.778161
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2013.778161
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2013.778161?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mr. Stephen Tokarick, 2010. "A Method for Calculating Export Supply and Import Demand Elasticities," IMF Working Papers 2010/180, International Monetary Fund.
    2. Nobuaki Yamashita, 2011. "The Currency of the People’s Republic of China and Production Fragmentation," Macroeconomics Working Papers 23209, East Asian Bureau of Economic Research.
    3. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    4. Shaghil Ahmed, 2009. "Are Chinese exports sensitive to changes in the exchange rate?," International Finance Discussion Papers 987, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Willem Thorbecke, 2015. "Measuring the Competitiveness of China's Processed Exports," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(1), pages 78-100, January.
    2. Witada Anukoonwattaka, 2013. "International Production Sharing and Exchange Rates of Asian Countries," Studies in Trade and Investment 80, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    3. Thorbecke, Willem, 2019. "East Asian value chains, exchange rates, and regional exchange rate arrangements," Journal of Asian Economics, Elsevier, vol. 65(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thorbecke, Willem & Chen, Chen & Salike, Nimesh, 2021. "China’s exports in a protectionist world," Journal of Asian Economics, Elsevier, vol. 77(C).
    2. Willem Thorbecke, 2013. "Investigating China's Disaggregated Processed Exports: Evidence that Both the RMB and Exchange Rates in Supply Chain Countries Matter," The World Economy, Wiley Blackwell, vol. 36(10), pages 1245-1260, October.
    3. Abiad, Abdul & Baris, Kristina & Bertulfo, Donald Jay & Camingue-Romance, Shiela & Feliciano, Paul Neilmer & Mariasingham, Joseph & Mercer-Blackman , Valerie & Bernabe, John Arvin, 2018. "The Impact of Trade Conflict on Developing Asia," ADB Economics Working Paper Series 566, Asian Development Bank.
    4. Liao, Wei & Shi, Kang & Zhang, Zhiwei, 2012. "Vertical trade and China's export dynamics," China Economic Review, Elsevier, vol. 23(4), pages 763-775.
    5. Nuno Limão & Giovanni Maggi, 2018. "Uncertainty and Trade Agreements," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 3, pages 47-88, World Scientific Publishing Co. Pte. Ltd..
    6. Yamashita, Nobuaki & Matsuura, Toshiyuki & Nakajima, Kentaro, 2014. "Agglomeration effects of inter-firm backward and forward linkages: Evidence from Japanese manufacturing investment in China," Journal of the Japanese and International Economies, Elsevier, vol. 34(C), pages 24-41.
    7. Gan-Ochir Doojav, 2018. "The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia," Foreign Trade Review, , vol. 53(4), pages 211-224, November.
    8. Cheung, Yin-Wong & Chinn, Menzie D. & Qian, XingWang, 2012. "Are Chinese trade flows different?," Journal of International Money and Finance, Elsevier, vol. 31(8), pages 2127-2146.
    9. Nobuaki Yamashita & Isamu Yamauchi, 2020. "Innovation responses of Japanese firms to Chinese import competition," The World Economy, Wiley Blackwell, vol. 43(1), pages 60-80, January.
    10. International Monetary Fund, 2016. "Chad: 2016 Article IV Consultation- Press Release; Staff Report; and Statement by the Executive Director for Chad," IMF Staff Country Reports 2016/274, International Monetary Fund.
    11. Xing, Yuqing, 2012. "Processing trade, exchange rates and China's bilateral trade balances," Journal of Asian Economics, Elsevier, vol. 23(5), pages 540-547.
    12. Khurram Ashfaq Baluch & Syed Kalim Hyder Bukhari, 2012. "Price and Income Elasticity of Imports: The Case of Pakistan," SBP Working Paper Series 48, State Bank of Pakistan, Research Department.
    13. Florence Huart & Gaël Lagadec, 2013. "Current account balance and exchange rate adjustment in New Caledonia," Economics Bulletin, AccessEcon, vol. 33(1), pages 113-125.
    14. Barine Michael Nwidobie, 2014. "Growth in Nigeria’s Non-Oil Export Finance and Non-Oil Export Performance: A Correlational Analysis," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(2), pages 31-39, February.
    15. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    16. International Monetary Fund, 2015. "Mali: 2015 Article IV Consultation, Fourth Review Under the Extended Credit Facility Arrangement, and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by ," IMF Staff Country Reports 2015/339, International Monetary Fund.
    17. Thorbecke, Willem, 2011. "Investigating the effect of exchange rate changes on china's processed exports," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 33-46, June.
    18. Willem Thorbecke, 2010. "How Would an Appreciation of the Yuan Affect the People’s Republic of China’s Surplus in Processing Trade?," Macroeconomics Working Papers 22823, East Asian Bureau of Economic Research.
    19. repec:zbw:bofitp:2014_023 is not listed on IDEAS
    20. Yin-Wong Cheung & Menzie D. Chinn & Xingwang Qian, 2014. "The Structural Behavior of China-US Trade Flows," CESifo Working Paper Series 5123, CESifo.
    21. Nobuaki Yamashita & Kyoji Fukao, 2010. "The Effects of Overseas Operations on Home Employment of Japanese Multinational Enterprises," Chapters, in: Noel Gaston & Ahmed M. Khalid (ed.), Globalization and Economic Integration, chapter 12, Edward Elgar Publishing.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:18:y:2013:i:2:p:318-332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.