IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-981-15-7522-8_7.html
   My bibliography  Save this book chapter

Promotion Effect of CNY Appreciation on Export Quality

In: Exchange Rate, Credit Constraints and China’s International Trade

Author

Listed:
  • Miaojie Yu

    (Peking University)

Abstract

How does the CNY appreciation impact Chinese exporters? In this chapter, we study the impact of exchange rate change on enterprises’ export quality decision. Using micro-level data of Chinese manufacturers and customs from 2000 to 2006, we estimate export quality more accurately by correcting approaches applied in previous literature. Based on the estimated export quality, we find that the appreciation of CNY intensifies the competition faced by Chinese exporters and therefore promotes their export quality upgrading behaviors. On average, 10% of CNY appreciation leads to an increase in export product quality by 0.19%. For industries with high quality differentiation, the effect of 10% CNY appreciation on export product quality increase is 0.4%, while for industries with low quality differentiation, this effect is insignificant. In addition, appreciation of CNY reduces the number of exporters. We also find that quality upgrading effect is more significant for non-core products and less-productive exporters. We find a new mechanism through which exchange rate change affects export decisions, and show that competition is an important driving force for product quality upgrading.

Suggested Citation

  • Miaojie Yu, 2021. "Promotion Effect of CNY Appreciation on Export Quality," Springer Books, in: Exchange Rate, Credit Constraints and China’s International Trade, chapter 0, pages 195-228, Springer.
    • Handle: RePEc:spr:sprchp:978-981-15-7522-8_7
    DOI: 10.1007/978-981-15-7522-8_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:sprchp:978-981-15-7522-8_7. 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.

    We have no bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.