The Effect of Exchange Rate Changes on Trade in East Asia

Willem Thorbecke

Macroeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper considers how exchange rates affect East Asian trade. The evidence indicates that exports produced within regional production networks depend on exchange rates throughout the region while labor-intensive exports depend on exchange rates in the exporting country. These results make sense since the majority of the value-added of processed exports come from imported parts and components while most of the value-added of labor-intensive exports comes from the domestic economy. Recent findings also indicate that imbalances between the People’s Republic of China (PRC) and the United States are a major outlier and that an appreciation of the PRC yuan (CNY) is necessary to reduce these imbalances.

Keywords: effects of the exchange rate; trade; East Asia; regional production networks; exports; China; PRC (search for similar items in EconPapers)
JEL-codes: F32 F41 (search for similar items in EconPapers)
Date: 2011-01
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.eaber.org/node/23274 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274 [301 Moved Permanently]--> https://www.eaber.org/node/23274)

Related works:
Journal Article: THE EFFECT OF EXCHANGE RATE CHANGES ON TRADE IN EAST ASIA (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2011)
Working Paper: The Effect of Exchange Rate Changes on Trade in East Asia (2006)
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:eab:macroe:23274

Access Statistics for this paper

More papers in Macroeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().