This paper measures the industry‐specific real effective exchange rate (REER) for China by matching domestic and foreign industry‐level price and trade data series. We find that after 2005 the REER appreciates more in the “chemical, plastics, rubber and fuels industry” and the...

We investigate how firms' exposure to exchange rate shocks affect their employment decisions using a comprehensive firm-level data from China that match employment information with exports by destination and imports by source country. Exposure to exchange rate shocks varies across firms because...