Exchange rate volatility and export performance: a cointegrated VAR approach

Boug, Pål; Fagereng, Andreas

doi:10.1080/00036840802600491

Cited by 41 publications

(21 citation statements)

References 40 publications

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“…They conclude that ‘the finding of a significant and negative impact of volatility is attributable to specification biases’. Boug and Fagereng (2010) find no evidence suggesting that export performance of Norwegian firms has been significantly affected by exchange rate uncertainty. Tenreyro (2007) uses an estimation approach to address the reverse causality problem in estimating the effect of nominal exchange rate volatility on trade flows, finding no significant impact.…”

Section: Exchange Rate Volatility and Tradementioning

confidence: 99%

The relationship between exchange rates and international trade: a literature review

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper surveys a wide body of economic literature on the relationship between currencies and trade. Specifically, two main issues are investigated: the impact on international trade of exchange rate volatility and of currency misalignments. On average, exchange rate volatility has a negative (even if not large) impact on trade flows. The extent of this effect depends on a number of factors, including the existence of hedging instruments, the structure of production (e.g. the prevalence of small firms), and the degree of economic integration across countries. The second issue involves exchange rate misalignments, which are predicted to have shortrun effects in models with price rigidities. However, the exact impact depends on a number of features, such as the pricing strategy of firms engaging in international trade and the importance of global production networks. This effect is predicted to disappear in the longrun, unless some other distortion characterizes the economy. Empirical results confirm that short-run effects can exist, but their size and persistence over time are not consistent across different studies. Terms of use: Documents inJEL-Code: F100, F310, F550.

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Section: Exchange Rate Volatility and Tradementioning

confidence: 99%

The relationship between exchange rates and international trade: a literature review

2013

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“…Both export volumes and import shares are based on the Armington hypothesis, cf. Boug and Fagereng (2010). Prices are based on a mark-up over marginal costs where the latter is derived from the production function, cf.…”

Section: A Short Presentation Of the Simulation Model Used In Our Studymentioning

confidence: 99%

Immigration and the Dutch disease A counterfactual analysis of the Norwegian resource boom 2004-2013

Cappelen

Eika

2019

Open Econ Rev

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The EU-enlargement in 2004 increased labour migration and affected the Norwegian labour market in particular. We study how this modified the Dutch disease effects during the resource boom 2004-2013. In the Norwegian case the resource movement effect of the petroleum industry has historically dominated the spending effect. One reason is the introduction of the fiscal policy rule in 2001 that limited spending. We find that economic growth in Norway was roughly doubled during this period due to the resource boom while total population increased by 2 percent. Moreover, both the resource movement and spending effects on Mainland GDP were roughly unaffected by immigration while employment increased, real wages fell and so did productivity.

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“…The function G is log-linear and homogeneous of degree zero in export and world market prices measured in a common currency. The indicator of world demand (D W ), measured by aggregating the imports of Norway's main trading partners, captures income effects; see Boug and Fagereng (2010). Consumption is modelled in a three-step procedure.…”

Section: A General Overviewmentioning

confidence: 99%

Deunionization and job polarization – a macroeconomic model analysis for a small open economy

Brasch

Gjelsvik²,

Sparrman

2018

Economic Systems Research

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Declining unionization rates and job polarization are two important labor market developments of recent decades. A large body of literature has analysed these phenomena separately, but little has been done to see whether there is a link between them. We employ a macroeconomic model for a small open economy with a large input-output core to analyse how deunionization may cause job polarization. Our analysis shows that medium-skilled workers are negatively affected by deunionization, mainly as a result of the heterogeneity of the elasticities of substitution between different types of labor. While the elasticities of substitution between highand medium-skilled labor are relatively low, the elasticities of substitution between medium-and low-skilled are relatively high. As a result, when deunionization leads to increased wage dispersion, we find that demand for low-skilled increases at the expense of medium-skilled labor, thus yielding a more polarised labor market. We would like to thank Pål Boug, Ådne Cappelen, Håvard Hungnes and Ingrid Bjartveit Krüger for inspiration and discussions, to Roger Hammersland for technical support in designing an automatic procedure for estimating the system of cost share equations and to Jørgen Ouren for carrying out the calculations. We also benefited from discussions during a presentation at

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Exchange rate volatility and export performance: a cointegrated VAR approach

Cited by 41 publications

References 40 publications

The relationship between exchange rates and international trade: a literature review

The relationship between exchange rates and international trade: a literature review

Immigration and the Dutch disease A counterfactual analysis of the Norwegian resource boom 2004-2013

Deunionization and job polarization – a macroeconomic model analysis for a small open economy

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