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Transmitted unemployment under the linked exchange rate system: Evidence from Hong Kong

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  • Ran, Jimmy
  • Zhou, Youqing

Abstract

This paper explores a link between exchange rate and unemployment at the aggregate level. We find that 1% increase in the US unemployment rate transmits, on average, 0.53% increase in Hong Kong unemployment under the linked exchange rate system.

Suggested Citation

  • Ran, Jimmy & Zhou, Youqing, 2012. "Transmitted unemployment under the linked exchange rate system: Evidence from Hong Kong," Economics Letters, Elsevier, vol. 117(1), pages 131-133.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:131-133
    DOI: 10.1016/j.econlet.2012.04.096
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    References listed on IDEAS

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    1. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
    2. Klein, Michael W. & Schuh, Scott & Triest, Robert K., 2003. "Job creation, job destruction, and the real exchange rate," Journal of International Economics, Elsevier, vol. 59(2), pages 239-265, March.
    3. Ana L. Revenga, 1992. "Exporting Jobs?The Impact of Import Competition on Employment and Wages in U. S. Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 255-284.
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    Cited by:

    1. Cho, Tsai-Lun & Lee, Cheng-Wen, 2019. "A Link of Unemployment Rate between Taiwan and the United States," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(3), pages 313-320.

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    More about this item

    Keywords

    Exchange rate; Unemployment; Transmission effect;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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