RMB Exchange Rate and Local Currency Price Stability: The Case of China and ASEAN+3

Xiao Bing Feng

Asia Pacific Economic Papers from Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University

Abstract: This paper uses Chinese and ASEAN+3 industry panel data to measure variations in mark-up adjustment behaviour that is associated with the exchange rate changes across export destination markets. Exports that are substitutes for local products exhibit a high degree of mark-up adjustment, which has the effect of stabilising prices in export destination countries. There is evidence of this behaviour in certain export products to China where the Chinese Government provides subsidies. When markup adjustment behaviour exists, the short-term dynamic mark-up adjustments are consistent with the long-term pricing behaviour in source countries.

JEL-codes: F31 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2006
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://crawford.anu.edu.au/pdf/pep/pep-356.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:csg:ajrcau:356

Access Statistics for this paper

More papers in Asia Pacific Economic Papers from Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Akira Kinefuchi ( this e-mail address is bad, please contact ).