THE ROLE OF EXCHANGE RATE IN SINO‐U.S. BILATERAL TRADE

Won Whe Koo · Renan Zhuang

19 citations0/0 files storedContemporary Economic Policy

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Global trade and economics Monetary Policy and Economic Impact Global Financial Crisis and Policies

Abstract

We use the error component two‐stage least squares estimation method to examine the effects of the Sino‐U.S. exchange rate and the weighted exchange rate between the United States and other Asian countries on the Sino‐U.S. trade patterns. Our study suggests that both the exchange rates have contributed to China’s increased trade surplus with the United States. China has imported intermediate goods from the Asian countries, produced final goods using its cheap labor, and exported those goods to the United States. This is especially true for bilateral trade of high‐tech manufacturing goods. Our study also reveals that the U.S. bilateral trade balance could improve if China appreciates its currency (Yuan) against the U.S. dollar. (JEL F14, F10, F19)

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 19 citations exist upstream.

References

2021Econometric Analysis of Panel Data 1990Scale Economies, Product Differentiation, and the Pattern of Trade 1975Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products.1980Theory of International Trade 1981Intraindustry Specialization and the Gains from Trade 2001National Money as a Barrier to International Trade: The Real Case for Currency Union 2001Using the gravity equation to differentiate among alternative theories of trade 2001Increasing Returns Versus National Product Differentiation as an Explanation for the Pattern of U.S.–Canada Trade

Cited by

2014The effects of the Yuan‐dollar exchange rate on agricultural commodity trade between the United States, China, and their competitors 2012International trade and macroeconomic dynamics: The case of U.S. bilateral trade with G-7 countries 2021On the (a)symmetric effects of real exchange rate on trade flows: new evidence from US–Vietnam trade balance at the industry level

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.