| Summary: | 碩士 === 國立臺灣大學 === 經濟學研究所 === 107 === This study aims to analyze the relationship between Taiwan''s exports and the New Taiwan (NT) dollar exchange rate. In particular, we exam whether a depreciation of NT dollar helps to boost exports. We further explore how Taiwan''s participation in global value chains has affected the relationship between exchange rates and exports. As the proportion of imported intermediate materials required for export products increases, the exchange rate elasticity of exports may decline accordingly. That is, the effect of exchange rate depreciation on stimulating exports may not be in line with expectations. Using monthly data from 1996 to 2011, it is found that currency depreciation is beneficial to exports in the early sample periods. However, with the changes in international business environment and bilateral trade competition in recent years, the relationship between exchange rate and exports seems to be weakened. In particular, due to Taiwan''s growing participation in global value chains, the exchange rate elasticity of exports has declined with statistical significance. Even considering the period before the Great Recession, the empirical results remain robust.
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