The effect of exchange rates on firm exports: the role of imported intermediate inputs.
Greenaway, David and Kneller, Richard and Zhang, Xufei (2010) The effect of exchange rates on firm exports: the role of imported intermediate inputs. World economy, 33 (8). pp. 961-986. ISSN 0378-5920
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In this paper we investigate the effect of exchange rate changes on the exports of UK manufacturing firms, but draw on the macro literature to consider the effects exchange rates have on imported intermediate inputs. Real exchange rate appreciations make the foreign export price of goods and services produced by domestic firms more expensive, but also make imported inputs cheaper. Our results provide support for this view; we find a significant negative effect from a measure of the export destination weighted real effective exchange rate and an offsetting effect from the imported intermediate input weighted exchange rate on export sales.
|Research Areas:||A. > Business School > Economics
A. > School of Science and Technology > Design Engineering and Mathematics
|Depositing User:||Dr X Zhang|
|Date Deposited:||02 Mar 2010 11:39|
|Last Modified:||15 Dec 2015 16:28|
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