University of Nottingham Ningbo China
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How Does Exchange Rate Movements affect Chinese Exports?

Date(s)
22 May 2013 (14:30-16:00)
Description

About the talk

We use detailed Chinese firm-level data for 2000–2007 to examine the effect of exchange rate movements on the export behavior of Chinese firms. We find that exchange rate movements have a significant and large pass-through to export price in destination currency,and a significant effect on export volume. Moreover, an appreciation of domestic currency reduces the probability of firm export and export firms’ product scope in existing destinations. We also find that firms with different characteristics measures respond differently to the changes in exchange rates: firms with high productivity will price more to market, while those with low productivity adjust their export volume. Firms with larger destination market share price more to market. Using firms import intensity and price changes of imported intermediate inputs, we also capture the impact of marginal cost changes on firms’ export price as well as volume.

Speaker biography

Dr. Hong Ma is currently an Associate Professor in Economics in the School of Economics and Management, Tsinghua University. He earned his PhD from University of California, Davis, and BA from Fudan University, both in economics. His current research interests include International Trade and Income Comparison. His research has been published in journals including Economic Journal, Journal of Economic Behavior and Organization and Review of International Economics.