Dr Zhichao Zhang zhichao.zhang@durham.ac.uk
Assistant Professor
China's exchange rate reform and exports
Zhang, Z.
Authors
Abstract
The paper argues that exchange rate reform is a vital supply-side factor in China's export growth. It contributes to China's export expansion by affording a realistic exchange rate and allowing freer access to foreign exchange, thereby leading to the reduction of anti-export bias and strong supply response. In an imperfect substitutes model, China's long-run export supply and demand functions are estimated in a system context. Evidence is found that the exchange rate reform is one of the most influential factors in China's long-run export expansion, inducing significant response of exports supply. In the short-run, the exchange rate reform and the export volume are also cross-linked through the error-correction process. China's exchange rate policy adjusts speedily to ensure the long-run equilibrium of the supply-side relationship and is likely to have played a dominant role in the adjustment. The study confirms, thanks to the exchange rate reform, China's exchange rate policy has benefited China's remarkable growth of exports before 1994.
Citation
Zhang, Z. (2001). China's exchange rate reform and exports. Economics of planning, 34(1-2), 89-112. https://doi.org/10.1023/a%3A1017549828555
Journal Article Type | Article |
---|---|
Publication Date | 2001-01 |
Deposit Date | Mar 22, 2007 |
Journal | Economics of Planning |
Print ISSN | 0013-0451 |
Electronic ISSN | 1573-0808 |
Publisher | Springer |
Peer Reviewed | Peer Reviewed |
Volume | 34 |
Issue | 1-2 |
Pages | 89-112 |
DOI | https://doi.org/10.1023/a%3A1017549828555 |
Keywords | Economic reform, Exchange rate policy, Exports, Cointegration analysis. |
Public URL | https://durham-repository.worktribe.com/output/1571166 |
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