RMB DEVALUATION AND ASEAN5 COUNTRIES’ EXPORTS TO THE US: COMPLEMENTARY OR SUBSTITUTE?
RMB DEVALUATION AND ASEAN5 COUNTRIES’ EXPORTS TO THE US: COMPLEMENTARY OR SUBSTITUTE?
Author(s): Tri Widodo, Diyah PUTRIANISubject(s): National Economy, Economic policy, International relations/trade, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: ASEAN5; Renminbi (RMB); Volatility; Cointegration;
Summary/Abstract: This paper aims to examine the impact of changes in the Chinese renminbi (RMB) exchange rate against the United States (US) dollar on the ASEAN5 countries’ exports to the US. The Johansen cointegration test and Ordinary Least Square (OLS) regression are applied. The cointegration tests show that there are long-term relationships among real GDP of the US, ASEAN5’s real exchange rates and their volatility, and RMB real exchange rate. The RMB devalution has positive significant long-term impacts (complementary relationship) on the ASEAN5 countries’ exports to the US.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2011
- Issue No: 8
- Page Range: 169-184
- Page Count: 16
- Language: English
