The Effects of Renminbi Revaluation on The Bilateral Trade Balance between Taiwan and Mainland China

• Main Authors: Jia-Xian Liu, 劉嘉憲
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/30877990592354247942

碩士 === 國立屏東商業技術學院 === 國際企業所 === 96 === This study explores the effects of Renminbi revaluation on the bilateral trade balance between Taiwan and Mainland China. The huge trade surplus, foreign exchange reserves and direct foreign investments of Mainland China have caused the revaluation problem for Renminbi. The bilateral trades between Taiwan and Mainland China have increased rapidly during the period when Renminbi faces the pressure from revaluation. The empirical result of this study revealed that the influence on the import and export price of the bilateral trade between Taiwan and China is smaller when Renminbi revalues. The effects of import and export price are smaller than the effects of incomes of Taiwan and Mainland China. Because the estimated elasticity value of the export income is higher than the estimated elasticity value of the import, an asymmetric phenomenon exists between Taiwan’s export and import income elasticities.