TITLE

Exchange Rate Impact on Bilateral Trade between India and China

AUTHOR(S)
Suresh, Anli
PUB. DATE
July 2012
SOURCE
Journal of Finance, Accounting & Management;Jul2012, Vol. 3 Issue 2, p15
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
China and India had similar development strategies prior to their breaking out of their deliberate insulation from the world economy and the ushering in of market-oriented economic reforms and liberalization. China began reforming its closed, centrally planned, non-market economy in 1978. India always had a large private sector and functioning markets, which were subject to rigid state controls until the hesitant and piecemeal reforms of the 1980s. These became systemic and far broader after India experienced a severe macroeconomic crisis in 1991. The political environments under which reforms initiated and implemented in the two countries and their consequences were very different. India continues to be an open, participatory, multiparty democracy, while China has an authoritarian, one party regime, however, it is liberalizing. In the Indian context, the analysis of macroeconomic data brought forth the fact that in the last decade and more so, in the last few years, China has become a major trading partner in trade activities of India. The main objective of the study is to find the impact of valuation i.e., appreciation of Chinese Renminbi (RMB) on India's trade with China. The findings of the paper hold that appreciation in RMB will affect the bilateral trade between India and China.
ACCESSION #
79923906

 

Related Articles

  • Exchange Rate Pass-through Effect: An Analysis of Different Trade Methods with Computer Technology. Tao Ren // Applied Mechanics & Materials;2014, Vol. 687-691, p4549 

    This paper investigates the degree of the sensitivity of different types of trade to RMB exchange rate pass-through (ERRT) on the basis of the 201 sample data collected from Oct. 1996 to June, 2013. As a result, the conclusion is drew that the incomplete pass-through effect of RMB exchange rate...

  • Introduction.  // BOFIT Discussion Papers;6/14/2012, Issue 14, p5 

    The article focuses on the Chinese trade flows. It states that the changing economic structure and different import intensities in China may exhibit instability in the financial position of the country. It further states that Chinese imports rise in response to renminbi (RMB) depreciation but...

  • The Red Tied. Theunissen, Garth // Finance Week;4/27/2005, p58 

    Focuses on China's much-maligned penchant for pegging its currency to the U.S. dollar. China's resistance to U.S.-led efforts to persuade it to employ a more flexible exchange rate regime; Belief that the Chinese yuan in undervalued; Impact of the exchange rate on the competitiveness of China's...

  • Revaluation of the Chinese Yuan and triad trade: A gravity assessment. Yu, Miaojie // Journal of Asian Economics;Nov2009, Vol. 20 Issue 6, p655 

    Abstract: The literature had paid little attention to the endogenous nexus between exchange rates and bilateral trade. In this paper, I use a gravity model to investigate the two-way causality between exchange rates and bilateral trade with data from China, Japan, and the United States during...

  • Convertibility of Capital Account: A Comparative Analysis. Md. Ariful Islam; Md. Rayhan Islam; Mahmudul Hasan Siddiqui; Karim, Luthful // Business & Economic Research (BER);Jun2014, Vol. 4 Issue 1, p110 

    Convertibility of capital account -- the complete elimination of all capital controls -- was often treated in the 1990s as an integral element of the market liberalization that was being urged on emerging markets. In the middle of the decade there was even talk of making it an objective of...

  • The PPP hypothesis and structural breaks: the case of Mexico. Gómez-Zaldívar, Manuel; Ventosa-Santaulària, Daniel; Wallace, Frederick H. // Empirical Economics;Dec2013, Vol. 45 Issue 3, p1351 

    We test the purchasing power parity hypothesis for the Mexican peso/US dollar real exchange rate using monthly data for 1969–2010. Results suggest that the real exchange rate reverts to a changing mean. These mean shifts can be explained by liberalization policies implemented during the...

  • BMI Research: Emerging Markets Monitor: All Eyes On Yuan.  // Emerging Markets Monitor;6/28/2010, Vol. 16 Issue 13, p1 

    The article reports on the foreign exchange rate status of the Chinese yuan (CNY) as of June 28, 2010.

  • TERMS OF TRADE DISTURBANCES, REAL EXCHANGE RATES, AND WELFARE: THE ROLE OF CAPITAL CONTROLS AND LABOR MARKET DISTORTIONS*. EDWARDS, SEBASTIAN; OSTRY, JONATHAN D. // Oxford Economic Papers;Jan1992, Vol. 44 Issue 1, p20 

    No abstract available.

  • Charting Poland's Economic Rebirth. Bartel, Richard D. // Challenge (05775132);Jan/Feb90, Vol. 33 Issue 1, p22 

    The article presents an interview with an economic adviser Jeffrey D. Sachs. In response to a query about an advice for the Solidarity government as a first step to create a market economy, he replied that as he has all ready advised Solidarity to move quickly to create a stable, internationally...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics