The Impact of a Common Currency on East Asian Production Networks and China's Exports Behavior PDF Download
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Author: Mizanur Rahman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Vertical fragmentation of product value chain across borders is the driving force of growing economic interdependency in East Asia. A common currency, not flexible exchange rates between national currencies, would reduce flexibility in relative prices within East Asia. Its impact would be far greater for exports that have stronger production network linkage. In order to test the hypothesis, the paper estimates the effect of a common currency on China's processing and ordinary exports separately. The distinction is necessary because the processing exports, unlike the ordinary exports, are produced along the regional production networks, with final stages of assembly and exporting being increasingly concentrated in China. The short-run dynamics indicate that the effect on China's processing exports is more than double the corresponding effect on China's ordinary exports. The long-run effect on the processing exports of intra-regional RER flexibility, which is otherwise the lack of a regional currency, is almost nine times as large as the long-run effect of a unilateral RMB appreciation. By contrast, the corresponding long-run effect is statistically insignificant for the case of ordinary exports that are produced primarily by using local inputs. The long-run coefficient of this intra-regional RER flexibility implies that the actual volume of processing exports is 20 percent below the potential. The magnitudes of these effects are consistent with the hypothesis that a common currency would further integrate East Asian production networks and promote regional economic integration.
Author: Mizanur Rahman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Vertical fragmentation of product value chain across borders is the driving force of growing economic interdependency in East Asia. A common currency, not flexible exchange rates between national currencies, would reduce flexibility in relative prices within East Asia. Its impact would be far greater for exports that have stronger production network linkage. In order to test the hypothesis, the paper estimates the effect of a common currency on China's processing and ordinary exports separately. The distinction is necessary because the processing exports, unlike the ordinary exports, are produced along the regional production networks, with final stages of assembly and exporting being increasingly concentrated in China. The short-run dynamics indicate that the effect on China's processing exports is more than double the corresponding effect on China's ordinary exports. The long-run effect on the processing exports of intra-regional RER flexibility, which is otherwise the lack of a regional currency, is almost nine times as large as the long-run effect of a unilateral RMB appreciation. By contrast, the corresponding long-run effect is statistically insignificant for the case of ordinary exports that are produced primarily by using local inputs. The long-run coefficient of this intra-regional RER flexibility implies that the actual volume of processing exports is 20 percent below the potential. The magnitudes of these effects are consistent with the hypothesis that a common currency would further integrate East Asian production networks and promote regional economic integration.
Author: Mizanur Rahman
Publisher: CreateSpace
ISBN: 9781514831359
Category :
Languages : en
Pages : 78
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Book Description
Global trade imbalance against China as well as East Asia is an outcome of 'globally integrated business strategy of multinational corporations,' which has led to the development of production networks in East Asia. As an outcome, economic interdependency in East Asia has grown even stronger in relation to its rapid economic growth. It has also been associated with increasing factor mobility and business cycle synchronization across countries within the region. This led me to conjecture that East Asia was an optimum currency area. Nevertheless, the countries have independent national currencies and conduct heterogeneous exchange rate and monetary policies. This provides the setting for this research. This monograph empirically examines if the actual policy environment relative to the optimal choice, in presence of an external shock, can significantly affect East Asian production networks and thereby the pattern of regional trade integration. While the actual policy environment is characterized by heterogeneous exchange rate regimes of East Asian countries, the optimal choice is assumed to be a currency area arrangement whereby the countries either share a single currency or have their exchange rates fixed to one another. It is thereby an ex ante analysis of a potential institutional arrangement. The conceptual framework and empirical methodologies are designed in order to draw valid inference on both the short-run dynamics and the long-run equilibrium relations between exchange rates and exports. It has been applied in the context of China, where final stages of assembly and exporting have become increasingly concentrated. In doing that, the study uses a unique Chinese trade dataset that distinguishes exports that are produced along the production networks from those that are not.
Author: Benno Ferrarini
Publisher: Edward Elgar Publishing
ISBN: 178347209X
Category : Business & Economics
Languages : en
Pages : 393
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Book Description
This timely book deploys new tools and measures to understand how global production networks change the nature of global economic interdependence, and how that in turn changes our understanding of which policies are appropriate in this new environment.
Author: World Trade Organization
Publisher:
ISBN:
Category :
Languages : en
Pages : 128
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Book Description
Author: John Joshua
Publisher: Springer Nature
ISBN: 3030280683
Category : Business & Economics
Languages : en
Pages : 219
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Book Description
This two-volume work provides a comprehensive overview of the Belt and Road Initiative, examining its impact on economic growth, trade, financial systems and international relations. Weaving theory with real-world examples, Joshua makes an important contribution to the understanding of how the Global Economy is being shaped through these developments. In this second volume, Joshua focuses on the operation of the international monetary system and the effects of the Belt and Road Initiative on both China's domestic economy and the Global Economy. In addition, this volume addresses the consequences of economic growth on the environment and international relations.
Author: International Development Research Centre (Canada)
Publisher: IDRC
ISBN: 9780889368064
Category : Business & Economics
Languages : en
Pages : 332
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Book Description
Multinationals and East Asian Integration
Author: Shiro Armstrong
Publisher: ANU Press
ISBN: 1760461768
Category : Political Science
Languages : en
Pages : 315
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Book Description
The Pacific Trade and Development (PAFTAD) conference series has been at the forefront of analysing challenges facing the economies of East Asia and the Pacific since its first meeting in Tokyo in January 1968. The 38th PAFTAD conference met at a key time to consider international economic integration. Earlier in the year, the people of the United Kingdom voted to leave the European Union and the United States elected Donald Trump as their next president on the back of an inward-looking ‘America First’ promise. Brexit and President Trump represent a growing, and worrying, trend towards protectionism in the North Atlantic countries that have led the process of globalisation since the end of the Second World War. The chapters in the volume describe the state of play in Asian economic integration but, more importantly, look forward to the region’s future, and the role it might play in defending the global system that has underwritten its historic rise. Asia has the potential to stand as a bulwark against the dual threats of North Atlantic protectionism and slowing trade growth, but collective leadership will be needed regionally and difficult domestic reforms will be required in each country.
Author: Barry Naughton
Publisher: Cambridge University Press
ISBN: 1107081068
Category : Business & Economics
Languages : en
Pages : 297
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Book Description
This volume explores how Chinese institutions have adapted to the new challenges of 'state capitalism'.
Author: Alessia Amighini (a cura di)
Publisher: Edizioni Epoké
ISBN: 8899647631
Category : Political Science
Languages : en
Pages : 110
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Book Description
Officially announced by Xi Jinping in 2013, the Belt and Road Initiative (BRI) has since become the centrepiece of China’s economic diplomacy. It is a commitment to ease bottlenecks to Eurasian trade by improving and building networks of connectivity across Central and Western Asia, where the BRI aims to act as a bond for the projects of regional cooperation and integration already in progress in Southern Asia. But it also reaches out to the Middle East as well as East and North Africa, a truly strategic area where the Belt joins the Road. Europe, the end-point of the New Silk Roads, both by land and by sea, is the ultimate geographic destination and political partner in the BRI. This report provides an in-depth analysis of the BRI, its logic, rationale and implications for international economic and political relations.
Author: National Intelligence Council
Publisher: Cosimo Reports
ISBN: 9781646794973
Category :
Languages : en
Pages : 158
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Book Description
"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.
