Spillover Effects of Exchange Rates: A Study of the Renminbi
Published By: IMF on eSS | Published Date: March, 01 , 2012This paper estimates the impact of China’s exchange rate changes on exports of competitor
countries in third markets, which is called as the “spillover effect. Recent theory is used to
develop an identification strategy in which competition between China and its developing
country competitors in specific products and destinations plays a key role. The
variation—afforded by disaggregated trade data—across exporters, importers, product, and
time to estimate this spillover effect is exploited.
Author(s): Aaditya Mattoo, Prachi Mishra, Arvind Subramanian | Posted on: Oct 29, 2014 | Views(790)