The Effect of RMB Exchange Rate Appreciation and Aepreciation on Export

YuXuan Li ()
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YuXuan Li: Grinnell College

A chapter in Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023), 2024, pp 781-789 from Springer

Abstract: Abstract The influence of exchange rates on global trade has long been a topic of significant interest and importance in the field of international economics. Exchange rates play a crucial role in determining the competitiveness of nations in the global marketplace, affecting the costs of imports and exports and shaping the dynamics of international trade flows. China has maintained its position as the world's largest country in goods trade for five consecutive years. At present, research on the impact of changes in the RMB exchange rate on export trade still has the following shortcomings: for the horizontal changes in the RMB exchange rate, current research has not distinguished the heterogeneous effects of RMB exchange rate appreciation and depreciation on exports. Based on that, This article subdivides the changes in exchange rate levels into appreciation and depreciation, this paper constructed a panel model in order to explore the heterogeneous impact of RMB appreciation and depreciation on exports.The study reveals that exchange rate appreciation and depreciation exhibit heterogeneous effects on export scale. In fact, contrary to expectations, exchange rate appreciation, which corresponds to currency depreciation, does not have a stimulating effect on China's export scale. Conversely, exchange rate depreciation, corresponding to currency appreciation, significantly inhibits the export scale.

Keywords: exchange rate depreciation; exchange rate appreciation; export; heterogeneous effects (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-441-9_66

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DOI: 10.2991/978-94-6463-441-9_66

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