Title

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

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

Publisher Statement

Copyright © Blackwell Publishing Ltd/University of Adelaide and Flinders University 2006

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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