Many argue that the renminbi needs to appreciate to rebalance China's trade. However, empirical evidence on the effects of an RMB appreciation on China's exports has been mixed for the largest category of exports, processed exports. Since much of the value-added of these goods comes from parts...

Capital goods exports exceed $3 trillion and are volatile. This paper estimates trade elasticities for capital goods exports. For the UK and the U.S., exports depend on exchange rates. For Germany and France they do not. For Japan, exports to non-Asian countries depend on exchange rates and...

The value of Japanese electronics exports has tumbled since the advent of the Global Financial Crisis, largely because export prices have fallen. This paper presents evidence that the appreciation of the yen between 2007 and 2011 caused yen export prices for electronics goods to fall by more...

This paper provides an analytical description of East Asian supply chains. The data indicate that they have become more and more centered on China. In a value-added sense, though, East Asia as a whole is running surpluses against the West. The paper then surveys evidence from a variety of...

This paper surveys research on foreign direct investment (FDI) in East Asia. The pattern of FDI in the region has changed over time. Outward FDI from Asia began in earnest when Japanese multinational corporations (MNCs) shifted production to other Asian economies following the 60% appreciation...

In last few decades, Asian production networks have contributed significantly toward the rapid trade expansion and economic growth in East Asia. Developed Asia produces technology-intensive intermediate goods and capital goods and ships them to the People Republic of China (PRC) and ASEAN for...

Many argue that the yuan needs to appreciate to rebalance the Peoples Republic of Chinas trade. However, empirical evidence on the effects of a CNY appreciation on the Peoples Republic of Chinas exports has been mixed for the largest category of exports, processed exports. Since much of the...

Enormous trade surpluses are problematic for the Peoples Republic of China (PRC) and the rest of the world. They primarily stem from processing trade. This paper investigates how exchange rate changes would affect the PRCs imports for processing and processed exports. The results indicate that...