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RMB Devaluation and Asean5 Countries’ Exports to the US: Complementary or Substitute?

Author

Listed:
  • Tri WIDODO

    (Faculty of Economics and Business, Universitas Gadjah Mada, Indonesia)

  • Diyah PUTRIANI

    (Center for Good Corporate Governance, Faculty of Economics and Business, Universitas Gadjah Mada)

Abstract

This paper aims to examine the impact of changes in the Chinese renminbi (RMB) exchange rate against the United States (US) dollar on the ASEAN5 countries’ exports to the US. The Johansen cointegration test and Ordinary Least Square (OLS) regression are applied. The cointegration tests show that there are long-term relationships among real GDP of the US, ASEAN5’s real exchange rates and their volatility, and RMB real exchange rate. The RMB devalution has positive significant long-term impacts (complementary relationship) on the ASEAN5 countries’ exports to the US.

Suggested Citation

  • Tri WIDODO & Diyah PUTRIANI, 2011. "RMB Devaluation and Asean5 Countries’ Exports to the US: Complementary or Substitute?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 8, pages 169-184, December.
    • Handle: RePEc:aic:revebs:y:2011:i:8:widodot
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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