Exchange Rate Changes and Export Product Markup:Mechanisms and Resource Allocation Effects
This paper utilizes data from China Industrial Enterprise Database and China Cus-toms Database from 2000 to 2013 to examine the impact of RMB exchange rate changes on the markup of Chinese export products based on the fact that the RMB exchange rate continued to ap-preciate during the sample period.The findings reveal that the appreciation of the real effective exchange rate of the RMB significantly enhances the export product markup.Furthermore,this effect is more pronounced in the case of heterogeneous products,competitive industries,foreign-funded firms,and firms engaged in import activities.Mechanism analysis demonstrates that the appreciation of the RMB exchange rate influences the markup of export products through the effects of product quality,marginal cost,price competition,and market selection.Notably,the dominant factors contributing to this increase in the markup are attributed to product quality up-grades and reductions in import costs.The study also uncovers that the market selection effect resulting from the appreciation of the RMB exchange rate reduces the dispersion of markup among firms within the product market,thus improving resource allocation efficiency among these firms.However,when considering both the market selection effect and the intra-firm markup ad-justments,the impact on resource allocation efficiency within the firms is not statistically signifi-cant.
万方数据
维普
