The Effect of Exchange Rate Changes on Trade in East Asia

Willem Thorbecke

No 263, ADBI Working Papers from Asian Development Bank Institute

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: global imbalances exchange rate elasticities prc; exchange rate changes east asia (search for similar items in EconPapers)
JEL-codes: F32 F41 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2011-01-20
New Economics Papers: this item is included in nep-ifn, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.adbi.org/files/2011.01.21.wp263.effect. ... .trade.east.asia.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.adbi.org/files/2011.01.21.wp263.effect.exchange.rate.changes.trade.east.asia.pdf [302 Moved Temporarily]--> https://www.adbi.org/files/2011.01.21.wp263.effect.exchange.rate.changes.trade.east.asia.pdf [302 Moved Temporarily]--> https://www.adb.org/adbi/files/2011.01.21.wp263.effect.exchange.rate.changes.trade.east.asia.pdf)

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:ris:adbiwp:0263

Access Statistics for this paper

More papers in ADBI Working Papers from Asian Development Bank Institute Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan. Contact information at EDIRC.
Bibliographic data for series maintained by ADB Institute ().