The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China
Previous studies that focused on the impact of the Renminbi (RMB) on China's trade performance have not paid much attention to how the RMB affects China's main supply chain countries, the Association of Southeast Asian Nations (ASEAN). Our paper fills this gap by addressing the nexus of pr...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46618/ http://psasir.upm.edu.my/id/eprint/46618/1/The%20impact%20of%20the%20renminbi%20real%20exchange%20rate%20on%20ASEAN%20disaggregated%20exports%20to%20China.pdf |
| _version_ | 1848850700196380672 |
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| author | Chee, Wooi Hooy Siong, Hook Law Tze, Haw Chan |
| author_facet | Chee, Wooi Hooy Siong, Hook Law Tze, Haw Chan |
| author_sort | Chee, Wooi Hooy |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Previous studies that focused on the impact of the Renminbi (RMB) on China's trade performance have not paid much attention to how the RMB affects China's main supply chain countries, the Association of Southeast Asian Nations (ASEAN). Our paper fills this gap by addressing the nexus of production fragmentation and product technology based on a panel dynamic ordinary least square (DOLS) estimator. We documented three findings. First, income elasticity is positive and significant in all export categories and increases with higher technology products. Second, consistent with the literature, we find that the RMB real exchange rate has a significant positive impact on ASEAN total exports to China and that the exports of high-tech and medium-tech finished goods, as well as the parts and components exports, contribute to this effect. Third, the RMB effect on disaggregated exports by technology level is mixed: For finished goods exports, higher technology exports are more sensitive to RMB depreciation, which is consistent with the income effect, while for parts and components exports, the lower technology exports actually have greater exposure to RMB depreciation, which is possibly due to the price effect and the recent production relocations of MNCs in the ASEAN region to China and Vietnam. |
| first_indexed | 2025-11-15T10:10:27Z |
| format | Article |
| id | upm-46618 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:10:27Z |
| publishDate | 2015 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-466182018-04-25T08:41:23Z http://psasir.upm.edu.my/id/eprint/46618/ The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China Chee, Wooi Hooy Siong, Hook Law Tze, Haw Chan Previous studies that focused on the impact of the Renminbi (RMB) on China's trade performance have not paid much attention to how the RMB affects China's main supply chain countries, the Association of Southeast Asian Nations (ASEAN). Our paper fills this gap by addressing the nexus of production fragmentation and product technology based on a panel dynamic ordinary least square (DOLS) estimator. We documented three findings. First, income elasticity is positive and significant in all export categories and increases with higher technology products. Second, consistent with the literature, we find that the RMB real exchange rate has a significant positive impact on ASEAN total exports to China and that the exports of high-tech and medium-tech finished goods, as well as the parts and components exports, contribute to this effect. Third, the RMB effect on disaggregated exports by technology level is mixed: For finished goods exports, higher technology exports are more sensitive to RMB depreciation, which is consistent with the income effect, while for parts and components exports, the lower technology exports actually have greater exposure to RMB depreciation, which is possibly due to the price effect and the recent production relocations of MNCs in the ASEAN region to China and Vietnam. Elsevier 2015 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/46618/1/The%20impact%20of%20the%20renminbi%20real%20exchange%20rate%20on%20ASEAN%20disaggregated%20exports%20to%20China.pdf Chee, Wooi Hooy and Siong, Hook Law and Tze, Haw Chan (2015) The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China. Economic Modelling, 47. pp. 253-259. ISSN 0264-9993; ESSN: 1873-6122 10.1016/j.econmod.2015.02.025 |
| spellingShingle | Chee, Wooi Hooy Siong, Hook Law Tze, Haw Chan The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title | The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title_full | The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title_fullStr | The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title_full_unstemmed | The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title_short | The impact of the renminbi real exchange rate on ASEAN disaggregated exports to China |
| title_sort | impact of the renminbi real exchange rate on asean disaggregated exports to china |
| url | http://psasir.upm.edu.my/id/eprint/46618/ http://psasir.upm.edu.my/id/eprint/46618/ http://psasir.upm.edu.my/id/eprint/46618/1/The%20impact%20of%20the%20renminbi%20real%20exchange%20rate%20on%20ASEAN%20disaggregated%20exports%20to%20China.pdf |