Language:

Importers, Exporters, and Exchange Rate Disconnect

The American economic review, 2014-07, Vol.104 (7), p.1942-1978 [Peer Reviewed Journal]

Full text available

Citations Cited by

Title:
Importers, Exporters, and Exchange Rate Disconnect
Author: Amiti, Mary ; Itskhoki, Oleg ; Konings, Jozef
Subjects: Central banks ; Costs ; Economic theory ; Economics ; Equilibrium ; Exchange rates ; Exporters ; Exports ; Foreign exchange rates ; Import prices ; Importers ; Imports ; International trade ; Marginal costs ; Market share ; Market shares ; Markups ; Productivity ; Studies ; Transaction costs ; Variable costs ; Variance ; Western Europe
Is Part Of: The American economic review, 2014-07, Vol.104 (7), p.1942-1978
Description: Large exporters are simultaneously large importers. We show that this pattern is key to understanding low aggregate exchange rate pass-through as well as the variation in pass-through across exporters. We develop a theoretical framework with variable markups and imported inputs, which predicts that firms with high import shares and high market shares have low exchange rate pass-through. We test and quantify the theoretical mechanism using Belgian firm-product-level data on imports and exports. Small nonimporting firms have nearly complete pass-through, while large import-intensive exporters have pass-through around 50 percent, with the marginal cost and markup channels contributing roughly equally.
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.104.7.1942
CODEN: AENRAA
Source: ProQuest Central

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Searching Remote Databases, Please Wait