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Does China really lose from RMB revaluation? Evidence from some export industries

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  • Jan Voon
  • Li Guangzhong
  • Jimmy Ran

Abstract

This study attempts to examine the impacts of Real Exchange Rate (RER) misalignment on China's export performance. Using the SUR methodology coupled with disaggregate panel export data, it shows that China's export sector may not necessarily lose from the Central Government's decision to revalue its RMB against the US dollar because the negative impact of the RER appreciation on Chinese exports may be diluted by the positive impacts attributing to a reduction in the RER misalignment.

Suggested Citation

  • Jan Voon & Li Guangzhong & Jimmy Ran, 2006. "Does China really lose from RMB revaluation? Evidence from some export industries," Applied Economics, Taylor & Francis Journals, vol. 38(15), pages 1715-1723.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:15:p:1715-1723
    DOI: 10.1080/00036840500427304
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    References listed on IDEAS

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    Cited by:

    1. Garcia-Herrero, Alicia & Koivu, Tuuli, 2007. "Can the chinese trade surplus be reduced through exchange rate policy?," BOFIT Discussion Papers 6/2007, Bank of Finland, Institute for Economies in Transition.
    2. Dai, Meixing, 2011. "Motivations and strategies for a real revaluation of the Yuan," MPRA Paper 30440, University Library of Munich, Germany.
    3. Alicia Garcia-Herrero & Tuuli Koivu, 2008. "China'S Exchange Rate Policy And Asian Trade," Economie Internationale, CEPII research center, issue 116, pages 53-92.

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