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- Asia (1)
- China (1)
- China’s exchange-rate reform (1)
- Currency appreciation (1)
- Difference-in-differences estimation (1)
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- Export structure (1)
- Financial frictions (1)
- Financial integration (1)
- Global financial crisis (1)
- Income divergence (1)
- Interest rate transmission (1)
- Minimum investment requirement (1)
- Open economy trilemma (1)
- Regression discontinuity design (1)
- Resource reallocation (1)
- Symmetry breaking (1)
- Trade integration (1)
Articles 1 - 3 of 3
Full-Text Articles in International Economics
Exchange Rates And Export Structure, Wen-Tai Hsu, Yi Lu, Yingke Zhou
Exchange Rates And Export Structure, Wen-Tai Hsu, Yi Lu, Yingke Zhou
Research Collection School Of Economics
This paper studies whether changes in the exchange rate affect a country’s export structure, using an arguably exogenous sudden appreciation of renminbi on July 21, 2005 as the main source of identification. Employing combined regression discontinuity and difference-in-differences approach, we show that China’s export structure became more similar to that of the developed countries after the currency appreciation. We also find that the majority of the appreciation effect comes from the inter-firm resource reallocation rather than the inter-region or intra-firm resource reallocation.
Trade And Financial Integration, Extensive Margin, And Income Divergence, Haiping Zhang
Trade And Financial Integration, Extensive Margin, And Income Divergence, Haiping Zhang
Research Collection School Of Economics
We revisit the classical question on economic integration and income convergence in a two-sector OLG model with financial frictions and sectoral heterogeneity in minimum investment requirements (MIR, hereafter). The extensive margin of investment is a critical channel through which aggregate income may become a determinant of comparative advantage. Free trade allows the rich (poor) country to specialize partially or completely in the high-MIR (low-MIR) sector which has a high (low) return endogenously. The specialization effect interacts with the neoclassical effect, which may lead to income divergence among inherently identical countries. Similarly, financial integration may also lead to income divergence through …
International Transmission Of Interest Rates And The Open Economy Trilemma In Asia, Hwee Kwan Chow
International Transmission Of Interest Rates And The Open Economy Trilemma In Asia, Hwee Kwan Chow
Research Collection School Of Economics
There has recently been much discussion on the relevance of the open economy trilemma in the context of deepening financial integration of countries across the world (see for instance, Rey (2013) and Devereux and Yetman (2014)). The open economy trilemma is an important issue for the countries in Asia not least because their financial systems are small and exchange rate stability is crucial to their economic growth. This paper investigates whether the economies in Asia are still bound by the "impossible trinity" by examining the interest rate transmission from the US to the region before and after the onset of …