Proceedings of the First International Conference Economic and Business Management 2016

Impact of China's Real Exchange Rate Volatility on Sino-US Commodity Trade

Authors
Jianning Chen, Lifeng Tu
Corresponding Author
Jianning Chen
Available Online November 2016.
DOI
10.2991/febm-16.2016.3How to use a DOI?
Keywords
real exchange rate fluctuation; Sino-US commodity trade; FGLS, GMM,SITC
Abstract

Constructing the imperfect substitute trade models of commodity goods between USA and China, this paper uses FGLS and GMM estimation to show whether fluctuation of the real China's exchange rate has any implication on the Sino-US commodity trade flows. Using two alternative measures of "real" China's exchange rates are discussed, export and import trade flows of 9 industries under 1-digit-SITC-category, we find the fluctuation of China's real effective exchange rate has significant impact on both export and import trade between two countries, however, the fluctuation of China's real exchange rate of Sino-US has no influence on it. The conclusion is China should maintain and loose the fluctuation in limited floating range to improve the structure and balance of international trade.

Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the First International Conference Economic and Business Management 2016
Series
Advances in Economics, Business and Management Research
Publication Date
November 2016
ISBN
978-94-6252-262-6
ISSN
2352-5428
DOI
10.2991/febm-16.2016.3How to use a DOI?
Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Jianning Chen
AU  - Lifeng Tu
PY  - 2016/11
DA  - 2016/11
TI  - Impact of China's Real Exchange Rate Volatility on Sino-US Commodity Trade
BT  - Proceedings of the First International Conference Economic and Business Management 2016
PB  - Atlantis Press
SP  - 16
EP  - 22
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-16.2016.3
DO  - 10.2991/febm-16.2016.3
ID  - Chen2016/11
ER  -