Risk, uncertainty and China's exports

Guangzhong LI; Jan Piaw, Thomas VOON; Jimmy RAN

doi:10.1111/j.1467-8454.2006.00284.x

Risk, uncertainty and China's exports

Guangzhong LI
, Jan Piaw, Thomas VOON
, Jimmy RAN

Department of Economics

Research output: Journal Publications › Journal Article (refereed) › peer-review

Abstract

Both theoretical and empirical models were developed in this paper to examine how exporters' response to real exchange rate volatility (RERV) and real exchange rate misalignment (RERM) varies across industries in China. The theoretical model indicates that the impact of RERV depends on exporters' attitude to risk while the effect of RERM is ambiguous. Using disaggregated industry data, Chinese exporters were found to be averse to RERV and RERM. This suggests that the negative impact on China's exports resulting from a revaluation of the RMB will be mitigated by a positive impact due to the reduction of RERM.

Original language	English
Pages (from-to)	158-168
Number of pages	11
Journal	Australian Economic Papers
Volume	45
Issue number	2
DOIs	https://doi.org/10.1111/j.1467-8454.2006.00284.x
Publication status	Published - 1 Jun 2006

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title = "Risk, uncertainty and China's exports",

abstract = "Both theoretical and empirical models were developed in this paper to examine how exporters' response to real exchange rate volatility (RERV) and real exchange rate misalignment (RERM) varies across industries in China. The theoretical model indicates that the impact of RERV depends on exporters' attitude to risk while the effect of RERM is ambiguous. Using disaggregated industry data, Chinese exporters were found to be averse to RERV and RERM. This suggests that the negative impact on China's exports resulting from a revaluation of the RMB will be mitigated by a positive impact due to the reduction of RERM.",

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AU - VOON, Jan Piaw, Thomas

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N2 - Both theoretical and empirical models were developed in this paper to examine how exporters' response to real exchange rate volatility (RERV) and real exchange rate misalignment (RERM) varies across industries in China. The theoretical model indicates that the impact of RERV depends on exporters' attitude to risk while the effect of RERM is ambiguous. Using disaggregated industry data, Chinese exporters were found to be averse to RERV and RERM. This suggests that the negative impact on China's exports resulting from a revaluation of the RMB will be mitigated by a positive impact due to the reduction of RERM.

AB - Both theoretical and empirical models were developed in this paper to examine how exporters' response to real exchange rate volatility (RERV) and real exchange rate misalignment (RERM) varies across industries in China. The theoretical model indicates that the impact of RERV depends on exporters' attitude to risk while the effect of RERM is ambiguous. Using disaggregated industry data, Chinese exporters were found to be averse to RERV and RERM. This suggests that the negative impact on China's exports resulting from a revaluation of the RMB will be mitigated by a positive impact due to the reduction of RERM.

U2 - 10.1111/j.1467-8454.2006.00284.x

DO - 10.1111/j.1467-8454.2006.00284.x

M3 - Journal Article (refereed)

SN - 0004-900X

VL - 45

SP - 158

EP - 168

JO - Australian Economic Papers

JF - Australian Economic Papers

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ER -

Risk, uncertainty and China's exports

Abstract

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