Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries

Autor:	Hyo Sang Kim, Hyelin Choi
Rok vydání:	2020
Předmět:	Economics and Econometrics 050208 finance Exchange rate Foreign ownership 0502 economics and business 05 social sciences Political Science and International Relations Subsidiary Production (economics) Monetary economics Business 050207 economics Finance
Zdroj:	Asian Economic Papers. 19:103-118
ISSN:	1536-0083 1535-3516
DOI:	10.1162/asep_a_00776
Popis:	This paper examines the role of global production linkages on exchange rate elasticities by using Korean firm-level data. Firms with foreign ownership or with foreign subsidiaries, which are linked to global production, tend to weaken the effects of exchange rate movements on firm exports. We find the exchange rate elasticities of firm exports are significant and tend to have a negative effect on domestic firms or firms with no foreign subsidiary. In contrast, the results show an insignificant effect on foreign-owned firms or firms with foreign subsidiaries. After controlling for the export to foreign affiliates, we still find the estimated exchange rate elasticities of exports to be statistically insignificant, although it has a negative and relatively large impact for firms with global production linkages. Moreover, firms with a higher global value chain integration measure or more imported intermediate inputs have a significantly lower exchange rate elasticity of exports. This indicates that the developments in global production linkages have an important role in explaining lower exchange rate elasticity to exports.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::50077d7c8872f0e607e55345437a6c3e https://doi.org/10.1162/asep_a_00776 Zobrazit plný text záznamu Plný text ve formátu PDF