JOURNAL BROWSE
Search
Advanced SearchSearch Tips
The effects of the RMB's appreciation on trade balance in US
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
The effects of the RMB's appreciation on trade balance in US
Gong, Chi; Liu, Zi-Yang;
  PDF(new window)
 Abstract
This paper applied a VAR model to analyze the effects of RMB exchange rate brought to processing trade, non-processing trade and FDI. Then we can get the results that the appreciation of RMB could not solve the problem of US trade deficit. It is more likely that the appreciation just can transfer the trade imbalance to other country with US, which could not radically solve the economic problems of US. Also this paper find that the data of service trade is surplus while the main goods deficit was occur in advanced technology product, especially in the information & communications trade And US has real advantage in these industries, so the situation will be changed if US decreased the barrier in these industries. In that way, the imbalance situation should be greatly reduced.
 Keywords
RMB's appreciation;trade balance;processing trade;FDI;advanced technology product trade;information & communications trade;
 Language
English
 Cited by
 References
1.
Ahmed, S., "Are Chinese Exports Sensitive to Changes in the Exchange Rate?," International Finance Discussion paper No. 987, Board of Governors of the Federal Reserve System.2009

2.
Berman, Nicolas, Philippe Martin, and Thierry Mayer. How Do Different Exporters React to Exchange Rate Changes, Quarterly Journal of Economics 127, 2012.

3.
Dedrick, J., K. L. Kraemer, and G. Linden. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs". Industrial and Corporate Change 19(1).2010

4.
Hooper, Peter, Karen Johnson, and Jaime Marquez. "Trade Elasticities for the G-7 Countries", Pricenton Studies in International Economics 87, 2000.

5.
Meri, T. "China passes the EU in high-tech exports". Science and Technology. Eurostat Statistics in focus. 2009

6.
Yuqing Xing & Neal Detert, 2010. "How the iPhone Widens the United States Trade Deficit with the People's Republic of China," Trade Working Papers 23280, East Asian Bureau of Economic Research

7.
Yuqing, Xing, "Processing trade, exchange rates and China's bilateral trade balances," Journal of Asian Economics, Elsevier, vol. 23(5), 2012.