The Relationship between Product Complexity and Exchange Rate Elasticities: Evidence from the People’s Republic of China’s Manufacturing Industries

Autor:	WILLEM THORBECKE, CHEN CHEN, NIMESH SALIKE
Jazyk:	angličtina
Rok vydání:	2021
Předmět:	exchange rate elasticities PRC exports product sophistication Social sciences and state - Asia (Asian studies only) H53
Zdroj:	Asian Development Review, Vol 38, Iss 02, Pp 189-212 (2021)
Druh dokumentu:	article
ISSN:	01161105 1996-7241 0116-1105
DOI:	10.1142/S0116110521500037
Popis:	More complex products are less substitutable in international trade and may therefore have lower price elasticities. We investigate this issue using 960 types of manufactured exports from the People’s Republic of China (PRC) to 190 partner economies disaggregated at the Harmonized System 4-digit level. We measure complexity using Hidalgo and Hausmann’s (2009) product complexity index. We find that price elasticities are lower for more complex goods. These results imply that the PRC can reduce its exporters’ exposure to tariffs, trade wars, and exchange rate volatility by upgrading its export basket.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/4b9891331a9b428786065c4f1e8a39b4 Zobrazit plný text záznamu View record in DOAJ