The effect of a collective exchange rate adjustment on East Asian exports

This paper estimates long-run effects of a collective exchange rate adjustment on multilateral exports from China, Japan, South Korea, and Taiwan. The findings show that a 1 percent generalized appreciation of all East Asian exchange rates would reduce East Asian exports by about 3 per cent. The authors acknowledge helpful comments from Masahiro Kawai of Asian Development Bank Institute (ADBI) and seminar participants at National Graduate Institute for Policy Studies (GRIPS), Tokyo. The research was conducted at GRIPS and, in part, at the Research Institute of Economy, Trade and Industry (RIETI). The views expressed herein are those of the authors and do not represent the views of GRIPS/RIETI or that of ADBI. Responsibility for all errors rests solely with the authors. Citation: Mizanur Rahman and Kaliappa Kalirajan, (2009) ''The effect of a collective exchange rate adjustment on East Asian exports'', Economics Bulletin, Vol. 29 no.4 pp. 2853-2859. Submitted: Jun 17 2009. Published: November 10, 2009.