An Examination Of The Impact Of Yuan Appreciation On The Sino-U.S. Trade Imbalance
Creator
WANG, DI
Advisor
Kern, Andreas
Abstract
China has become the United States' largest import source, second largest trading partner, and third largest export market. However, political tensions over trade relations between these two countries continue growing. U.S. policymakers blame the Chinese government's manipulation of its currency as a cause of the U.S. trade deficit. This paper investigates whether the recent Chinese currency appreciation has decreased the U.S. trade imbalance, and analyzes what sectors are affected the most by the Yuan appreciation. To analyze the elasticity of the Yuan appreciation, I use fourteen years of quarterly data from US Census Bureau, U.S. Bureau of Labor Statistics, Federal Reserve Bank of St. Louis, the World Bank's World Development Indicators (WDI) and International Financial Statistics from the International Monetary Foundation (IMF) in gravity model of international trade. Consistent with previous research, I found that Yuan appreciation in real terms reduce U.S. trade deficits. China's traditional low-tech and labor-intensive exporting industries are affected the most; however, Chinese industrial goods are not sensitive to the rise of the exchange rate.
Description
M.P.P.
Permanent Link
http://hdl.handle.net/10822/760934Date Published
2015Subject
Type
Publisher
Georgetown University
Extent
45 leaves
Metadata
Show full item recordRelated items
Showing items related by title, author, creator and subject.
-
Evaluation of the Informed Consent Process in a Randomized Controlled Trial in China: The Sino-U.S. NTD Project
Wang, Hong; Erickson, J. David; Li, Zhu; Berry, Robert J. (2004-03)