Exchange Rate,Import and Export:Evidence from Taiwan's Export to China,Japan and USA.
Date Issued
2016
Date
2016
Author(s)
Huang, Yin-Zhen
Abstract
The purpose of this study is to discuss whether the exchange rate depreciation can really be helpful for Taiwan''s exports? In general, the depreciation of exchange rate is helpful for exports while the appreciation of exchange rate is not helpful for exports. Exchange rate depreciation may be helpful for exports, but if the value of the products can not be improved,the exchange rate just can be use to solve short-term problems, and only be a short-term emergency measure of the government. As international competitors devaluate their national currency competitively, at last it will affect the export competitiveness of domestic products. To investgate the impact of exchange rate depreciation on exports,this paper discusses through traditional exports model, and puts the import factor into the export model.By setting specifications into the autoregressive distributed lag (ARDL) model,we analyze how the impact of exchange rate changes affect on Taiwan''s export changes.The empirical results of this paper show that the factors of Taiwan''s export trade changes,one is exchange rate changes, the other is import trade changes that also have a certain influence on.
Subjects
exchange rate depreciation
export model
autoregressive distributed lag (ARDL) model
exchange rate changes
export trade changes
import trade changes
Type
thesis
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