TY - BOOK ID - 30498661 TI - Spillover Effects of Exchange Rates : A Study of the Renminbi AU - Subramanian, Arvind. AU - Mishra, Prachi. AU - Mattoo, Aaditya. AU - International Monetary Fund. PY - 2012 SN - 1475552300 1475516878 1475502621 1475577222 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign exchange rates KW - Renminbi KW - Exports KW - CNY (Money) KW - Ren min bi KW - RMB (Money) KW - Yuan (Money) KW - Money KW - China KW - Exports and Imports KW - Finance: General KW - Foreign Exchange KW - Trade Policy KW - International Trade Organizations KW - Empirical Studies of Trade KW - Economywide Country Studies: Asia including Middle East KW - Trade: General KW - General Financial Markets: General (includes Measurement and Data) KW - Currency KW - Foreign exchange KW - International economics KW - Finance KW - Exchange rates KW - Competition KW - Imports KW - Real exchange rates KW - International trade KW - Financial markets KW - China, People's Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:30498661 AB - This paper estimates the impact of China's exchange rate changes on exports of competitor countries in third markets, which we call the "spillover effect". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in specific products and destinations plays a key role. We exploit the variation - afforded by disaggregated trade data - across exporters, importers, product, and time to estimate this spillover effect. We find robust evidence of a statistically and quantitatively significant spillover effect. Our estimates suggest that a 10 percent appreciation of China's real exchange rate boosts on average a developing country's exports of a typical 4-digit HS product category to third markets by about 1.5-2 percent. The magnitude of the spillover effect varies systematically with product characteristics as implied by theory. ER -