How do exchange rate movements affect Chinese exports? - A firm-level investigation

• 成果类型: Article
• 署名作者: Li, Hongbin; Ma, Hong; Xu, Yuan
• 署名单位: Tsinghua University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2015.04.006
• 发表日期: 2015
• 页码: 148-161
• 关键词: Exchange rate elasticity; exchange rate pass-through; Extensive margin

摘要

This paper provides first-hand firm-level evidence on Chinese exporters' reaction to RMB exchange rate movements. We find that the RMB price response to exchange rate changes is very small, indicating relatively high exchange rate pass-through into foreign currency denominated prices, while the volume response is moderate and significant. Furthermore, exporters with higher productivity price more to market, though the pass-through is still very high. Other sources of heterogeneity, such as import intensity, distribution costs, income level of the destination countries, and foreign ownership also matter. Moreover, RMB appreciation reduces the probability of entry as well as the probability of continuing in the export market. (C) 2015 Elsevier B.V. All rights reserved.