2011 Fiscal Year Final Research Report
Exchange Rate, structure of Trade and Trade balance in the context of China and G-7 Countries
| Project/Area Number |
21530214
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | National Graduate Institute for Policy Studies |
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Principal Investigator |
XING Yuqing 政策研究大学院大学, 政策研究科, 教授 (80288232)
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| Project Period (FY) |
2009 – 2011
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| Keywords | China / exchange rates / trade balances / processing trade |
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| Research Abstract |
The major results of this research are 1. China's overall trade surplus from 1994-2008 were attributed 100% to processing trade, which also determined China's bilateral trade balance with G-7 and other major trading partners ; 2. The appreciation of the Yuan would not only reduce China's processing exports but also processing imports. The overall effect of the Yuan's appreciation on China's trade balance would be limited ; in addition, the appreciation of the Yuan would affect only the value added produced in China NOT all value added embedded in "made-in-China" Products. 3 the pass-through of the Yuan appreciation is in-complete. There is no pass-through effect to the prices of Japanese imports from China ; and 4. Current trade statistic greatly inflates the bilateral trade imbalances between China and the US. Most of China's trade surplus with the US was transferred from third countries. Reforms in trade statistics are needed.
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Research Products
(10 results)
