Arbeitspapier

Firm export dynamics and the exchange rate: A quantitative exploration

We develop a quantitative theoretical model of firm dynamics to analyze key determinants of the elasticity of exports with respect to the exchange rate. The model incorporates mechanisms that determine the firms? capacity to react when the profitability of exports change due to fluctuations in the exchange rate. The framework allows for a quantitative assessment of different mechanisms: distribution costs represent the most important factor, as well as the exogenous and gradual growth dynamics of new exporters, and the currency denomination of sunk-entry costs into the foreign market. The different versions of the model are evaluated by contrasting the behavior of simulated variables with empirical estimates and evidence found in the literature. In addition, we present an assessment of the effects on the intensive and extensive margins of exports.

Sprache
Englisch

Erschienen in
Series: Working Papers ; No. 2019-05

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Open Economy Macroeconomics
Thema
export dynamics
hysteresis
exchange rates
heterogeneous firms
exchange rate passthrough

Ereignis
Geistige Schöpfung
(wer)
Lopez-Martin, Bernabe
Ereignis
Veröffentlichung
(wer)
Banco de México
(wo)
Ciudad de México
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Lopez-Martin, Bernabe
  • Banco de México

Entstanden

  • 2019

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