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The effect of a collective exchange rate adjustment on East Asian exports

Author

Listed:
  • Mizanur Rahman

    (University of Dhaka & Asian Development Bank Institute (ADBI))

  • Kaliappa Kalirajan

    (National Graduate Institute for Policy Studies (GRIPS))

Abstract

This paper estimates long-run effects of a collective exchange rate adjustment on multilateral exports from China, Japan, South Korea, and Taiwan. The findings show that a 1 percent generalized appreciation of all East Asian exchange rates would reduce East Asian exports by about 3 per cent.

Suggested Citation

  • Mizanur Rahman & Kaliappa Kalirajan, 2009. "The effect of a collective exchange rate adjustment on East Asian exports," Economics Bulletin, AccessEcon, vol. 29(4), pages 2853-2859.
    • Handle: RePEc:ebl:ecbull:eb-09-00365
    as

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    References listed on IDEAS

    as
    1. Mizanur Rahman, 2009. "The Impact of Real Exchange Rate Flexibility on East Asian Exports," The World Economy, Wiley Blackwell, vol. 32(7), pages 1075-1090, July.
    2. Rose, Andrew K. & Yellen, Janet L., 1989. "Is there a J-curve?," Journal of Monetary Economics, Elsevier, vol. 24(1), pages 53-68, July.
    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    4. Masahiro Kawai, 2008. "Toward A Regional Exchange Rate Regime In East Asia," Pacific Economic Review, Wiley Blackwell, vol. 13(1), pages 83-103, February.
    5. Alan Greenspan, 2005. "China: testimony before the Committee on Finance, U.S. Senate, June 23, 2005," Speech 125, Board of Governors of the Federal Reserve System (U.S.).
    6. Mizanur RAHMAN & Willem THORBECKE, 2007. "How Would China's Exports be Affected by a Unilateral Appreciation of the RMB and a Joint Appreciation of Countries Supplying Intermediate Imports?," Discussion papers 07012, Research Institute of Economy, Trade and Industry (RIETI).
    7. Cushman, David O., 1987. "U.S. bilateral trade balances and the dollar," Economics Letters, Elsevier, vol. 24(4), pages 363-367.
    8. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Global imbalance; exchange rate; collective adjustment; production networks; East Asia;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F1 - International Economics - - Trade

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