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Was China the First Domino? Assessing Links between China and the Rest of Emerging Asia (1998)
| Citations: | 68 - 5 self |
BibTeX
@MISC{Fernald98waschina,
author = {John Fernald and John Fernald and Hali Edison and Hali Edison and Prakash Loungani and Prakash Loungani},
title = {Was China the First Domino? Assessing Links between China and the Rest of Emerging Asia},
year = {1998}
}
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Abstract
: We assess links between China and the rest of emerging Asia. Some commentators have argued that China's apparent devaluation in 1994 may have contributed to the Asian financial crisis. We argue that the devaluation was not economically important: The more-relevant exchange rate was a floating rate that was not devalued, and high Chinese inflation has led to a very sharp real appreciation of the currency. Although in principle, export competition with China could nevertheless have placed pressure on other Asian exporters, we argue that the striking feature of the data is the common movement between export growth from China and from other developing Asian economies. To the extent there is evidence of export competition, it is the period from about 1989 to 1993: China's exchange rate depreciated sharply, Chinese export growth exceeded export growth of other Asian economies, and the composition of Asian exports (measured by export shares of various goods to the United States and...
Keyphrases
emerging asia first domino asian economy export competition export growth various good exchange rate more-relevant exchange rate sharp real appreciation asian export export share asian financial crisis asian exporter united state apparent devaluation common movement striking feature high chinese inflation floating rate chinese export growth
