The Impact of Yuan Revaluation on the Asian Region
24 Pages Posted: 27 Aug 2007
Date Written: July 2007
This paper studies how an appreciation of the yuan affects the exports of other Asian countries. It finds mixed effects. Countries that export consumer goods to China or compete in third markets benefit from yuan appreciation, while countries that supply capital goods to China lose. These findings suggest that a revaluation of the yuan may not lead to a generalised revaluation of Asian currencies.
Keywords: Global imbalance, exchange rate, China and Asia
JEL Classification: F3, F4
Suggested Citation: Suggested Citation