The effect of exchange rates on firm exports and the role of FDI

Greenaway, David, Kneller, Richard and Zhang, Xufei ORCID: https://orcid.org/0000-0003-4111-6782 (2012) The effect of exchange rates on firm exports and the role of FDI. Review of World Economics, 148 (3) . pp. 425-447. ISSN 1610-2878 [Article] (doi:10.1007/s10290-012-0129-y)

Abstract

This paper studies how exchange rate movements affect the export market entry and intensity decision of firms and the export behaviour of multinationals in the UK. Using data on British manufacturing firms we find that exchange rate movements have little effect on firm export participation but have a significant impact on export shares. Multinationals have at their disposal a greater array of instruments to deal with exchange rates changes, although their use may vary according to the motives behind FDI. We also find important differences according to the country of origin of multinational firms. Multinationals firms originating from outside of the EU are less affected by changes in the exchange rate compared to those inside, who appear similarly affected as domestic firms.

Item Type:	Article
Research Areas:	A. > School of Science and Technology > Design Engineering and Mathematics A. > Business School > Economics
Item ID:	9989
Useful Links:	Organisation Middlesex University Expert Profile
Depositing User:	Dr X Zhang
Date Deposited:	28 Feb 2013 08:10
Last Modified:	13 Oct 2016 14:26
URI:	https://eprints.mdx.ac.uk/id/eprint/9989

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