The export response to exchange rates and product fragmentation: the case of Chinese manufactured exports

Nobuaki Yamashita and Sisira Jayasuriya

Journal of the Asia Pacific Economy, 2013, vol. 18, issue 2, 318-332

Abstract: This paper examines how changes in the Chinese real exchange rate affect China's exports in the context of global production networks. It highlights the misspecification inherent in conventional export models and the importance of distinguishing between the very different impacts of exchange rate changes relative to export destinations and those relative to sources of parts and components. Our empirical estimates cast further doubts on the effectiveness of Chinese exchange rate adjustments for reducing Chinese export volumes.

Date: 2013
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DOI: 10.1080/13547860.2013.778161

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