Spillover Effects of Exchange Rates : A Study of the Renminbi
This paper estimates how changes in China's exchange rates would affect exports from competitor countries in third-country markets -- in other words, the "spillover effect." The authors use recent theory to develop an identification...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120309093600 http://hdl.handle.net/10986/3278 |
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okr-10986-32782021-04-23T14:02:08Z Spillover Effects of Exchange Rates : A Study of the Renminbi Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind ABSOLUTE VALUE ALTERNATIVE EXCHANGE RATE BENCHMARKING BILATERAL EXCHANGE RATE BILATERAL TRADE BUSINESS CYCLE CHECKS COMPETITIVE ADVANTAGE COMPETITIVE DEVALUATIONS COMPETITIVENESS CONSUMERS CORRELATION COEFFICIENT CORRELATION COEFFICIENTS COUNTRY FIXED EFFECTS COUNTRY MARKET COUNTRY MARKETS COUNTRY OF ORIGIN COUNTRY TO COUNTRY CURRENCY CURRENCY UNIONS DEFLATORS DEPENDENT VARIABLE DEPRECIATION DEPRECIATIONS DEPRESSION DEVALUATIONS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFERENT CURRENCIES DOLLAR EXCHANGE RATE DOMESTIC INFLATION DOMESTIC PRICE DOMESTIC PRICES ECONOMETRIC ESTIMATES ECONOMIC GROWTH EFFECT OF EXCHANGE RATE CHANGES EFFECTIVE EXCHANGE RATE EFFECTIVE EXCHANGE RATES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF EXPORTS ELASTICITY OF SUBSTITUTION ESTIMATION STRATEGY EXCESS CAPACITY EXCHANGE RATE DATA EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATE PEGS EXCHANGE RATE POLICIES EXCHANGE RATE POLICY EXCHANGE RATES EXPENDITURE EXPORT PERFORMANCE EXPORTER EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FIRM PERFORMANCE FIXED SHARE FOREIGN FIRMS FOREIGN TRADE GDP GLOBALIZATION HUMAN RESOURCES IMPORT IMPORT DEMAND IMPORT PRICES IMPORTS INCOME INDUSTRIAL COUNTRIES INFLATION INTANGIBLE INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LIFE EXPECTANCY MACROECONOMIC VARIABLE MACROECONOMICS MANUFACTURING INDUSTRIES MARKET ENTRY MARKET ENTRY COSTS MARKET EXCHANGE RATES MARKET VALUATIONS MIDDLE INCOME COUNTRIES MONETARY FUND MULTILATERAL EXCHANGE RATE NOMINAL BILATERAL EXCHANGE RATE NOMINAL EXCHANGE RATE OTHER CURRENCIES OUTPUT POLITICAL ECONOMY POSITIVE COEFFICIENT POWER PARITY PRICE INDEX PRICE INDICES PRICE LEVEL PURCHASING PURCHASING POWER PURCHASING POWER PARITY REAL EFFECTIVE EXCHANGE RATE REAL EFFECTIVE EXCHANGE RATES REAL EXCHANGE RATE REAL EXCHANGE RATES REAL EXPORTS REGIONAL DUMMIES RELATIVE PRICE REVALUATION ROBUSTNESS CHECKS SAVINGS SAVINGS MOTIVE SAVINGS RATES STANDARD DEVIATION STOCK MARKET STOCK PRICES SUPPLY CONDITIONS THIRD MARKET THIRD MARKETS TOTAL EXPORTS TOTAL IMPORTS TRADE AGREEMENTS TRADE DATA TRADE POLICIES TRANSMISSION MECHANISM UNEMPLOYMENT VALUATIONS VALUE ADDED WEIGHTS This paper estimates how changes in China's exchange rates would affect exports from competitor countries in third-country markets -- in other words, the "spillover effect." The authors use recent theory to develop an identification strategy, with a key role for the competition between China and its developing country competitors in specific products and export destinations. Using disaggregated trade data, they estimate the spillover effect by exploiting the variation across different exporters, importers, products, and time periods. They find a spillover effect that is statistically and quantitatively significant. Their estimates suggest that a 10-percent appreciation of China's real exchange rate boosts a developing country's exports of a typical four-digit Harmonized System product category to third markets by about 1.5 to 2 percent on average. The magnitude of the spillover effect varies systematically with the characteristics of products, such as the extent to which they are differentiated. 2012-03-19T17:29:37Z 2012-03-19T17:29:37Z 2012-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120309093600 http://hdl.handle.net/10986/3278 English Policy Research working paper ; no. WPS 5989 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific East Asia and Pacific East Asia Asia China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE VALUE ALTERNATIVE EXCHANGE RATE BENCHMARKING BILATERAL EXCHANGE RATE BILATERAL TRADE BUSINESS CYCLE CHECKS COMPETITIVE ADVANTAGE COMPETITIVE DEVALUATIONS COMPETITIVENESS CONSUMERS CORRELATION COEFFICIENT CORRELATION COEFFICIENTS COUNTRY FIXED EFFECTS COUNTRY MARKET COUNTRY MARKETS COUNTRY OF ORIGIN COUNTRY TO COUNTRY CURRENCY CURRENCY UNIONS DEFLATORS DEPENDENT VARIABLE DEPRECIATION DEPRECIATIONS DEPRESSION DEVALUATIONS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFERENT CURRENCIES DOLLAR EXCHANGE RATE DOMESTIC INFLATION DOMESTIC PRICE DOMESTIC PRICES ECONOMETRIC ESTIMATES ECONOMIC GROWTH EFFECT OF EXCHANGE RATE CHANGES EFFECTIVE EXCHANGE RATE EFFECTIVE EXCHANGE RATES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF EXPORTS ELASTICITY OF SUBSTITUTION ESTIMATION STRATEGY EXCESS CAPACITY EXCHANGE RATE DATA EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATE PEGS EXCHANGE RATE POLICIES EXCHANGE RATE POLICY EXCHANGE RATES EXPENDITURE EXPORT PERFORMANCE EXPORTER EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FIRM PERFORMANCE FIXED SHARE FOREIGN FIRMS FOREIGN TRADE GDP GLOBALIZATION HUMAN RESOURCES IMPORT IMPORT DEMAND IMPORT PRICES IMPORTS INCOME INDUSTRIAL COUNTRIES INFLATION INTANGIBLE INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LIFE EXPECTANCY MACROECONOMIC VARIABLE MACROECONOMICS MANUFACTURING INDUSTRIES MARKET ENTRY MARKET ENTRY COSTS MARKET EXCHANGE RATES MARKET VALUATIONS MIDDLE INCOME COUNTRIES MONETARY FUND MULTILATERAL EXCHANGE RATE NOMINAL BILATERAL EXCHANGE RATE NOMINAL EXCHANGE RATE OTHER CURRENCIES OUTPUT POLITICAL ECONOMY POSITIVE COEFFICIENT POWER PARITY PRICE INDEX PRICE INDICES PRICE LEVEL PURCHASING PURCHASING POWER PURCHASING POWER PARITY REAL EFFECTIVE EXCHANGE RATE REAL EFFECTIVE EXCHANGE RATES REAL EXCHANGE RATE REAL EXCHANGE RATES REAL EXPORTS REGIONAL DUMMIES RELATIVE PRICE REVALUATION ROBUSTNESS CHECKS SAVINGS SAVINGS MOTIVE SAVINGS RATES STANDARD DEVIATION STOCK MARKET STOCK PRICES SUPPLY CONDITIONS THIRD MARKET THIRD MARKETS TOTAL EXPORTS TOTAL IMPORTS TRADE AGREEMENTS TRADE DATA TRADE POLICIES TRANSMISSION MECHANISM UNEMPLOYMENT VALUATIONS VALUE ADDED WEIGHTS |
| spellingShingle |
ABSOLUTE VALUE ALTERNATIVE EXCHANGE RATE BENCHMARKING BILATERAL EXCHANGE RATE BILATERAL TRADE BUSINESS CYCLE CHECKS COMPETITIVE ADVANTAGE COMPETITIVE DEVALUATIONS COMPETITIVENESS CONSUMERS CORRELATION COEFFICIENT CORRELATION COEFFICIENTS COUNTRY FIXED EFFECTS COUNTRY MARKET COUNTRY MARKETS COUNTRY OF ORIGIN COUNTRY TO COUNTRY CURRENCY CURRENCY UNIONS DEFLATORS DEPENDENT VARIABLE DEPRECIATION DEPRECIATIONS DEPRESSION DEVALUATIONS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFERENT CURRENCIES DOLLAR EXCHANGE RATE DOMESTIC INFLATION DOMESTIC PRICE DOMESTIC PRICES ECONOMETRIC ESTIMATES ECONOMIC GROWTH EFFECT OF EXCHANGE RATE CHANGES EFFECTIVE EXCHANGE RATE EFFECTIVE EXCHANGE RATES ELASTICITY ELASTICITY OF DEMAND ELASTICITY OF EXPORTS ELASTICITY OF SUBSTITUTION ESTIMATION STRATEGY EXCESS CAPACITY EXCHANGE RATE DATA EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE MOVEMENTS EXCHANGE RATE PEGS EXCHANGE RATE POLICIES EXCHANGE RATE POLICY EXCHANGE RATES EXPENDITURE EXPORT PERFORMANCE EXPORTER EXPORTERS EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FIRM PERFORMANCE FIXED SHARE FOREIGN FIRMS FOREIGN TRADE GDP GLOBALIZATION HUMAN RESOURCES IMPORT IMPORT DEMAND IMPORT PRICES IMPORTS INCOME INDUSTRIAL COUNTRIES INFLATION INTANGIBLE INTERMEDIATE GOODS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MACROECONOMICS INTERNATIONAL TRADE LIFE EXPECTANCY MACROECONOMIC VARIABLE MACROECONOMICS MANUFACTURING INDUSTRIES MARKET ENTRY MARKET ENTRY COSTS MARKET EXCHANGE RATES MARKET VALUATIONS MIDDLE INCOME COUNTRIES MONETARY FUND MULTILATERAL EXCHANGE RATE NOMINAL BILATERAL EXCHANGE RATE NOMINAL EXCHANGE RATE OTHER CURRENCIES OUTPUT POLITICAL ECONOMY POSITIVE COEFFICIENT POWER PARITY PRICE INDEX PRICE INDICES PRICE LEVEL PURCHASING PURCHASING POWER PURCHASING POWER PARITY REAL EFFECTIVE EXCHANGE RATE REAL EFFECTIVE EXCHANGE RATES REAL EXCHANGE RATE REAL EXCHANGE RATES REAL EXPORTS REGIONAL DUMMIES RELATIVE PRICE REVALUATION ROBUSTNESS CHECKS SAVINGS SAVINGS MOTIVE SAVINGS RATES STANDARD DEVIATION STOCK MARKET STOCK PRICES SUPPLY CONDITIONS THIRD MARKET THIRD MARKETS TOTAL EXPORTS TOTAL IMPORTS TRADE AGREEMENTS TRADE DATA TRADE POLICIES TRANSMISSION MECHANISM UNEMPLOYMENT VALUATIONS VALUE ADDED WEIGHTS Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind Spillover Effects of Exchange Rates : A Study of the Renminbi |
| geographic_facet |
East Asia and Pacific East Asia and Pacific East Asia Asia China |
| relation |
Policy Research working paper ; no. WPS 5989 |
| description |
This paper estimates how changes in
China's exchange rates would affect exports from
competitor countries in third-country markets -- in other
words, the "spillover effect." The authors use
recent theory to develop an identification strategy, with a
key role for the competition between China and its
developing country competitors in specific products and
export destinations. Using disaggregated trade data, they
estimate the spillover effect by exploiting the variation
across different exporters, importers, products, and time
periods. They find a spillover effect that is statistically
and quantitatively significant. Their estimates suggest that
a 10-percent appreciation of China's real exchange rate
boosts a developing country's exports of a typical
four-digit Harmonized System product category to third
markets by about 1.5 to 2 percent on average. The magnitude
of the spillover effect varies systematically with the
characteristics of products, such as the extent to which
they are differentiated. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind |
| author_facet |
Mattoo, Aaditya Mishra, Prachi Subramanian, Arvind |
| author_sort |
Mattoo, Aaditya |
| title |
Spillover Effects of Exchange Rates : A Study of the Renminbi |
| title_short |
Spillover Effects of Exchange Rates : A Study of the Renminbi |
| title_full |
Spillover Effects of Exchange Rates : A Study of the Renminbi |
| title_fullStr |
Spillover Effects of Exchange Rates : A Study of the Renminbi |
| title_full_unstemmed |
Spillover Effects of Exchange Rates : A Study of the Renminbi |
| title_sort |
spillover effects of exchange rates : a study of the renminbi |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120309093600 http://hdl.handle.net/10986/3278 |
| _version_ |
1764386720229359616 |