Exchange-rate fluctuation and pricing behavior in China's wood-based panel exporters: evidence from panel data Academic Article uri icon


  • As the largest wood-based panel producing and exporting country, China has experienced sharp reductions in the growth rate of its wood-based panel exports because of pressure caused by exchange-rate fluctuation. These fluctuations were exacerbated by the global financial crisis. Chinas wood-based panel exporters need to adjust their pricing strategy to cope with the changes of international market conditions. Thus, it is necessary to investigate the relationship between exchange-rate fluctuation and the pricing behavior of Chinas wood-based panel exporters. To evaluate the impact of the exchange rate on Chinas wood-based panel export prices across multiple destinations, a pricing-to-market model incorporating panel data was used. The empirical results suggest that although complete exchange-rate pass-through exists widely in Chinas wood-based exports, Chinas fiberboard and plywood exporters tended to adopt different pricing strategies in the international wood-based panel market during the post-crisis era. Chinas fiberboard exporters often used the pricing-to-market model to determine prices in the main export destination countries, while Chinas plywood exporters tended to amplify the exchange-rate effects. This indicates that Chinas plywood exporters have stronger international market power than Chinas fiberboard exporters, partly because Chinas plywood exporters have more advantages in terms of skilled labor.

published proceedings


altmetric score

  • 0.75

author list (cited authors)

  • Wang, F., Yin, Z., & Gan, J.

citation count

  • 4

complete list of authors

  • Wang, Fang||Yin, Zhonghua||Gan, Jianbang

publication date

  • January 2017