China's Exchange Rate Reform and Exports |
| |
Authors: | Zhichao Zhang |
| |
Institution: | 1. St. Antony's College, Oxford University, Woodstock Road, Oxford, OX2 6JF, UK
|
| |
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. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|