The Effects of Currency War on the Trade Balance of Taiwan

• Main Authors: CHIU, YU-HSIN, 邱昱馨
• Other Authors: LIU, TZU-NIEN
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/19120735211699399677

碩士 === 國立屏東大學 === 國際貿易學系碩士班 === 104 === After the U.S. adopted the “Quantitative easing” policies in 2008, others countries such as the UK, the EU and Japan also carried out their each easing monetary policies to revitalize economy. And then it caused the currency war to break out. According this situation, many countries face a hot many attack on their currency, and it not only causes appreciation, but also raises the foreign exchange commotion of the global. However, the efficacy of devaluation by currency war is decline in recent years. Therefore, this thesis explores the influence of currency war on Taiwan’s trade balance. The results of empirical analysis find that the bilateral trade between Taiwan and mainland China or Korea, the sum of Taiwan’s exports and imports price elasticities are greater than one. It seems to satisfy the Marshall-Lerner condition. This could imply that the bilateral trade between Taiwan and mainland China or Korea seem sensitive to exchange rates changing. The Taiwan’s bilateral trade with the U.S. and Singapore seem insensitive to exchange rates changes, and it could imply that Taiwan’s bilateral trade with they are sensitive to income changes. The Taiwan’s export with Japan could be sensitive to exchange rates changes, and import seems sensitive to income changes. The Taiwan’s export with Hong Kong seems sensitive to income changes, and import could be insensitive to both.