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.
Original language | English |
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Pages (from-to) | 1715-1723 |
Number of pages | 9 |
Journal | Applied Economics |
Volume | 38 |
Issue number | 15 |
DOIs | |
Publication status | Published - 1 Jan 2006 |
Funding
The work described in this paper was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. LU3110/04H).