Trade and Exchange Rate Competition in East Asia
Bibliographic Data
| ID | 9958905 |
|---|---|
| Authors | Mark Manger (0000-0003-1984-5866, University of Toronto), Nicola Nones (0000-0001-8402-4963, University of Toronto) |
| Year | 2025 |
| Volume | 79 |
| Issue | 3 |
| Pages | 526-546 |
| Publication date | 2025-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Organization (JOURNAL) |
| Journal identifiers | ISSN: 0020-8183 • E-ISSN: 1531-5088 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0020818325100751 |
| OpenAlex | W4413304097 |
| Language | EN |
| References cited | 33 |
Exchange rate manipulation—the active devaluation of a currency through intervention in the foreign exchange market—is a frequent trigger of international disputes. Yet it is not an obvious policy choice: as a blunt tool to boost export competitiveness, it is disliked by citizens and importers because of the loss of purchasing power it entails, and because it benefits those with investment abroad at the expense of those with savings at home. It is thus notable that a group of East Asian countries, from Japan and Korea to Thailand, undertake frequent and often large interventions to devalue their currencies. What explains their policy choice? We provide evidence that exchange rate depreciations are undertaken at the behest of export industries. Because lobbying activities in East Asian countries are not directly observable, we focus on Japan and Korea and construct a proxy measure of lobbying by exporters, drawing on news reports. We use machine learning to scale daily reports of industry demands in the two leading financial newspapers, the Japanese Nihon Keizai Shimbun and, in a robustness check, the Korean Hankyung, over twenty-five years. We find evidence that mounting public pressure by organized economic interest groups precedes intervention and induces currency depreciation
Biology · Business · China · Competition (biology · East Asia · Economics · Exchange rate · International economics · International trade · Political science · Finance · Global Financial Crisis and Policies · Global trade and economics · Monetary Policy and Economic Impact
Modeling Ordered Choices
Assessing Proportionality in the Proportional Odds Model for Ordinal Logistic Regression
Exchange Rate Pass-Through into Import Prices
Latent Semantic Scaling
Debt, Development, and Democracy
Currencies and Politics in the United States, Germany, and Japan
Achieving Statistical Significance with Control Variables and Without Transparency
Real Sources of European Currency Policy
Political Cycles and Exchange Rate-Based Stabilization
To Devalue or to Defend? The Political Economy of Exchange Rate Policy
The Politics of Speculative Attacks in Industrial Democracies
Do Exchange Rates Influence Voting? Evidence from Elections and Survey Experiments in Democracies
A New Approach for Determining Exchange-Rate Level Preferences
Exchange Rates and Industry Demands for Trade Protection
Interest Group Influence in Authoritarian States
The Political Economy of International Trade
Thepoliticaleconomy Ofinternationalmonetaryrelations
Who Adjusts? Domestic Sources of Foreign Economic Policy during the Interwar Years
| Citation velocity | historical |
|---|---|
| Highly cited | No |