How do Different Exporters React to Exchange Rate Changes?

Berman, Nicolas; Martin, Philippe; Mayer, Thierry

doi:10.1093/qje/qjr057

Cited by 594 publications

(758 citation statements)

References 27 publications

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“…Besides that, high-performance exporters would increase more markups but less export volume associated with currency depreciation (Berman, Martin, and Mayer, 2012). The appreciation of Renminbi (RMB) reduces the probability of export participation.…”

Section: Materials Studiedmentioning

confidence: 99%

Determinants of Export: Empirical Study in Malaysia

Lee¹,

Har²,

Zhengyi³

et al. 2016

JIBE

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This research aims to study the relationship of export with four determinants, namely import, inflation, foreign direct investment (FDI), and exchange rate. Sample years are 1975 to 2013. Ordinary least square (OLS) is used. Results revealed that import has positive relationship with export. This implied that Malaysia import may be an "assembly point exporter". Electric and electrical (E&E), which is Malaysia major export component has high possibly where inputs are imported, then assembly and exported. Foreign exchange rate (domestic currency in term of foreign) has positive relationship with export, thus validating Marshall Learner hypothesis. Inflation has negative relationship as higher aggregate price increase cost of production and decreasing price competitiveness of export. Foreign direct investment has an inverted-U curve relationship, which give further insight into conflicting evidence of linear relationship between export and FDI. Facilities provided to promote export may attract inflow of foreign investment. However, if FDI is targeted to produce for domestic market, it may not contribute to export growth.

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Section: Materials Studiedmentioning

confidence: 99%

Determinants of Export: Empirical Study in Malaysia

Lee¹,

Har²,

Zhengyi³

et al. 2016

JIBE

View full text Add to dashboard Cite

show abstract

“…One consequence is that estimates obtained at the aggregate level might not be isomorphic to what happens at the firm level. Different firms might respond differently to the same shocks (Berman et al, 2012); more generally, the variation between firm-level characteristics offers precious clues on the determinants of trade performance. This is what will be done in the present paper.…”

Section: Introductionmentioning

confidence: 99%

Technology and costs in international competitiveness: From countries and sectors to firms

2015

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This paper examines the determinants of international competitiveness at the level of sectors and firms. First, we address the relation between cost-related and technological competition in a sample of fifteen OECD countries. Results suggest that the countries' sectoral market shares are indeed mainly shaped by technological factors (proxied by investment intensity and patents) while cost advantages/disadvantages do not seem to play any significant role. Next, we attempt to identify the underlying dynamics at the firm level. We do that for a single country, Italy, using a large panel of Italian firms, over nearly two decades. Results show that also at micro level in most sectors investments and patents correlate positively both with the probability of being an exporter and with the capacity to acquire and to increase export market shares. The evidence on costs is more mixed. A simple measure like total labour compensation is positively correlated with the probability of being an exporter, while unit labour costs show a negative correlation only in some manufacturing sectors.

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“…Amiti et al [15] argue that the exchange rate pass-through of large exporters has decreased, while Berman et al [25] put forward the same argument for high performing firms. As both these two type of firms have gained importance in international markets, absorbing exchange rate movements in one's mark-up might have become more common, thereby also reducing the exchange rate elasticity of foreign trade over the last decades.…”

Section: Related Literaturementioning

confidence: 99%

The Exchange Rate Response of Credit-Constrained Exporters: The Role of Location

Borgersen¹

2016

TEL

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This paper analyses the exchange rate response of credit-constrained exporters and highlights location-driven balance sheet effects residing both on the real side and on the financial side of the economy. A model focusing the location of production relative to both credit markets and to the first and the second hand market for capital inputs introduces a number of balance-sheet driven exchange rate effects. When it comes to location, we consider four regimes, referred to as a developed, a developing and two transition economies that differ with respect to production technology and credit market structure, respectively. The export supply response differs both across countries at different stages of development as well as between countries with different strategies to globalisation.

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How do Different Exporters React to Exchange Rate Changes?

Cited by 594 publications

References 27 publications

Determinants of Export: Empirical Study in Malaysia

Determinants of Export: Empirical Study in Malaysia

Technology and costs in international competitiveness: From countries and sectors to firms

The Exchange Rate Response of Credit-Constrained Exporters: The Role of Location

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