IDEAS home Printed from https://ideas.repec.org/a/taf/glecrv/v40y2011i2p211-225.html
   My bibliography  Save this article

The Impact of Chinese Exchange Rate Policy on the Rest of the World: Evidence from Firm-Level Data

Author

Listed:
  • Barry Eichengreen
  • Hui Tong

Abstract

This paper aims to gauge the global effect of renminbi revaluation on stock markets. Using data on 12,300 firms in operating in tradable sectors in 44 economies, we find that expectations of renminbi appreciation reduce the relative stock returns of firms providing components or raw materials to China as inputs for that country's exports. We also find some evidence that expectations of renminbi appreciation reduce the stock prices of financially constrained firms.

Suggested Citation

  • Barry Eichengreen & Hui Tong, 2011. "The Impact of Chinese Exchange Rate Policy on the Rest of the World: Evidence from Firm-Level Data," Global Economic Review, Taylor & Francis Journals, vol. 40(2), pages 211-225.
  • Handle: RePEc:taf:glecrv:v:40:y:2011:i:2:p:211-225
    DOI: 10.1080/1226508X.2011.585054
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/1226508X.2011.585054
    Download Restriction: Access to full text is restricted to subscribers.

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

    Citations

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


    Cited by:

    1. Huang, Lin & Wu, Jia & Zhang, Rui, 2014. "Exchange risk and asset returns: A theoretical and empirical study of an open economy asset pricing model," Emerging Markets Review, Elsevier, vol. 21(C), pages 96-116.

    More about this item

    Keywords

    China; exchange rate; firms; rest of the world;

    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:glecrv:v:40:y:2011:i:2:p:211-225. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RGER20 .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.