Abstract:
Contrasting to exchange rate level or volatility, this paper focus on the effect of exchange rate regime on China's export growth. We found that China and 34% trade partners are in fact in fixed exchange rate regime; the trade volume under fixed exchange rate regime is about 1.30~1.92 times of that under floating exchange rate regime; if China and all its trade partners were in floating exchange rate regime, China's export volume would decrease 6.42~13.29%; furthermore, the promoting effect is larger for the product with higher dependence on external financing. Therefore, fixed exchange rate regime not only increases export volume but also upgrades export structure.
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