EconPapers    
Economics at your fingertips  
 

Currency overvaluation and export product quality: Evidence from China

Dongmin Kong, Zheng Shi and Mengxu Xiong

International Review of Financial Analysis, 2024, vol. 93, issue C

Abstract: Based on Chinese industrial firm information and international transaction data from 2003 to 2013, we construct a currency overvaluation index across 297 cities in China. Using the innovative index, we present that currency overvaluation significantly promotes export product quality of Chinese manufacturing enterprises, which is conceivably due to increased import of intermediate goods. Heterogeneity analysis reveals that the impact is more pronounced for medium-sized firms, domestic invested firms, and firms in non-mega cities. By investigating the driving forces of export product quality improvement, we provide clear policy implications for government and firms pursuing long-term development.

Keywords: Currency overvaluation; Export product quality; China (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521924000826
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000826

DOI: 10.1016/j.irfa.2024.103150

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-19
Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924000826