An evaluation of the effects of RMB devaluation on China's trade flows : an empirical model with reference to institutional factors and structural changes

Abstract

The large nominal devaluation of the official exchange rate of RMB in 1994 has been speculated by some as the reason behind China's post-1994 export surge and the break out of Asian economy crisis in 1997. This is because it led to a significant improvement in China's export competitiveness, which in turn resulted in a crowding out effect on exports of other Asian countries.