02055cas a2200265 a 4500 AALejournalIMF011765 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475502626 1018-5941 BD-DhAAL BD-DhAAL Subramanian, Arvind. Spillover Effects of Exchange Rates : A Study of the Renminbi / Arvind Subramanian, Prachi Mishra, Aaditya Mattoo. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper estimates the impact of China's exchange rate changes on exports of competitor countries in third markets, which we call the "spillover effect". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in specific products and destinations plays a key role. We exploit the variation - afforded by disaggregated trade data - across exporters, importers, product, and time to estimate this spillover effect. We find robust evidence of a statistically and quantitatively significant spillover effect. Our estimates suggest that a 10 percent appreciation of China's real exchange rate boosts on average a developing country's exports of a typical 4-digit HS product category to third markets by about 1.5-2 percent. The magnitude of the spillover effect varies systematically with product characteristics as implied by theory. Mode of access: Internet Mattoo, Aaditya. Mishra, Prachi. IMF Working Papers; Working Paper ; No. 2012/088 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/088/001.2012.issue-088-en.xml IMF e-Library