[ADBI Working Paper 260]
(December 2010)

Abstract
This paper investigates import demand in East Asia. Estimating exchange rate elasticities for countries in the region is difficult because many imports are used to produce goods for re-export. An exchange rate appreciation that reduces East Asian exports will also reduce the demand for imported inputs that are used to produce exports. To correct for this bias this paper examines the imports of consumption goods, since these are intended primarily for the domestic market. Results from several specifications indicate that currency appreciations and increases in income in East Asian countries would significantly increase consumption imports.

[관련자료]
학술보고서 : China's monetary policy and the exchange rate

학술보고서 : Investigating the Effect of Exchange Rate Changes on Chinas Processed Exports