How responsive are Chinese exports to exchange rate changes? Evidence from firm-level data

Article

Zhang, X. and Liu, X. 2012. How responsive are Chinese exports to exchange rate changes? Evidence from firm-level data. Journal of Development Studies. 48 (10), pp. 1489-1504. https://doi.org/10.1080/00220388.2012.663903
TypeArticle
TitleHow responsive are Chinese exports to exchange rate changes? Evidence from firm-level data
AuthorsZhang, X. and Liu, X.
Abstract

This article examines the impact of exchange rate changes on Chinese firms’ decisions on export market entry and export share. Using a large dataset for Chinese firms in 2000-2006, we find that changes in exchange rate levels play a significant role on both export extensive and intensive margins of Chinese firms. Compared to studies using macro data, our firm-level analysis allows us to control for firm and industry heterogeneity. Firm size and location matter. We do not find a difference between foreign and domestic firms in responding to exchange rate changes. Industry heterogeneity is also found to be important.
[author's abstract]

PublisherTaylor and Francis
JournalJournal of Development Studies
ISSN0022-0388
Publication dates
Print2012
Publication process dates
Deposited20 Mar 2013
Output statusPublished
Digital Object Identifier (DOI)https://doi.org/10.1080/00220388.2012.663903
LanguageEnglish
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