Risk, uncertainty and China's exports
Document Type
Journal article
Source Publication
Australian Economic Papers
Publication Date
6-1-2006
Volume
45
Issue
2
First Page
158
Last Page
168
Publisher
Wiley-Blackwell Publishing Asia
Abstract
Both theoretical and empirical models were developed in this paper to examine how exporters' response to real exchange rate volatility (RERV) and real exchange rate misalignment (RERM) varies across industries in China. The theoretical model indicates that the impact of RERV depends on exporters' attitude to risk while the effect of RERM is ambiguous. Using disaggregated industry data, Chinese exporters were found to be averse to RERV and RERM. This suggests that the negative impact on China's exports resulting from a revaluation of the RMB will be mitigated by a positive impact due to the reduction of RERM.
DOI
10.1111/j.1467-8454.2006.00284.x
Print ISSN
0004900X
E-ISSN
14678454
Funding Information
This paper was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. LU3110/04H).
Publisher Statement
Copyright © Blackwell Publishing Ltd/University of Adelaide and Flinders University 2006
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Li, G., Voon, J. P., & Ran, J. (2006). Risk, uncertainty and China's exports. Australian Economic Papers, 45(2), 158-168. doi: 10.1111/j.1467-8454.2006.00284.x