search query: @author Lin, Yifu / total: 10
reference: 7 / 10
| Author: | Lin, Yifu |
| Title: | Devaluation of RMB is unnecessary and improper (original in Chinese) |
| Journal: | China Reform (c)
1998 : 9, p.27-28 |
| Index terms: | DEVALUATION CURRENCY CHINA |
| Language: | chn |
| Abstract: | The greatest cost of maintaining RMB from devaluation is the impossibility to stimulate export trade by lowering exchange rate. However, there are many other ways available to increase export, among which tax reimbursement on export is an important one. The previous rate of tax reimbursement on export of finished products used to be 17 per cent. Later, it was lowered to 9 per cent. If it returns to 17 percent, it is equal to the decrease of costs of export products by 8 per cent. Import costs constitute approximately 50 per cent in the total amount of export of China. Therefore the stimulating effects on export by raising the tax reimbursement on export by 8 per cent equals to devaluing RMB by 16 per cent and it has no negative effect. |
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