Renminbi depreciations and Japan-China commodity trade: do manufactured goods show stronger support for the S-curve?
Mohsen Bahmani-Oskooee (),
Scott Hegerty () and
International Journal of Public Policy, 2011, vol. 7, issue 4/5/6, 250-264
Because consumer prices and trade quantities tend to exhibit stronger rigidities than do nominal exchange rates, trade balances usually respond to currency appreciations and depreciations only after a time lag. This dynamic adjustment â€“ depicted as correlations between deviations in a country pair's real exchange rate and their bilateral trade balance â€“ is known as the 'S curve'. In this study, we evaluate this phenomenon for trade between China and Japan in 73 individual industries. We find that 26 of these commodities conform to the S-curve, and that certain categories of manufactures are more likely to do so than are other commodities.
Keywords: S-curve; industry data; China; Japan; renminbi; currency depreciations; money; commodity trade; manufactured goods; consumer prices; trade quantities; commodities; exchange rates; trade balances; currency appreciations; currencies; bilateral trade; public policy. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpubp:v:7:y:2011:i:4/5/6:p:250-264
Access Statistics for this article
More articles in International Journal of Public Policy from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Carmel O'Grady (). This e-mail address is bad, please contact .