 Industry-specific Real Effective Exchange Rates in AsiaKiyotaka Sato, Junko Shimizu, Nagendra Shrestha and Shajuan Zhang Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Abstract: This study constructs a monthly series of industry-specific real effective exchange rates (I-REERs) based on the producer price indices of nine Asian economies from 2001 to 2014. To check the usefulness of the I-REERs as a measurement of international price competitiveness, we calculated the aggregated I-REER (Avg-I-REER) and compared it with the REER published by the Bank for International Settlements (BIS-REER). We found that in some Asian economies, the Avg-I-REER exhibited different movements from the BIS-REER due to the differences in the underlying prices and weights used for the data construction. We also conducted a panel analysis to investigate the effect of both the Avg-I-REER and BIS-REER on real exports in the nine Asian economies. It was revealed that an appreciation of the Avg-I-REER has a negative and significant impact on real exports, whereas that of the BIS-REER has a positive and insignificant influence on real exports. Even the "aggregated" I-REER shows a greater advantage when used for measuring the export price competitiveness relative to the conventional REERs. Pages: 25 pages Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:15036 Access Statistics for this paper More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC. |
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