The effect of exchange rates on firm exports: the role of imported intermediate inputs.

Article

Greenaway, D., Kneller, R. and Zhang, X. 2010. The effect of exchange rates on firm exports: the role of imported intermediate inputs. World Economy. 33 (8), pp. 961-986. https://doi.org/10.1111/j.1467-9701.2010.01308.x
TypeArticle
TitleThe effect of exchange rates on firm exports: the role of imported intermediate inputs.
AuthorsGreenaway, D., Kneller, R. and Zhang, X.
Abstract

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.

PublisherWileyBlackwell
JournalWorld Economy
ISSN0378-5920
Publication dates
PrintAug 2010
Publication process dates
Deposited02 Mar 2010
Output statusPublished
Digital Object Identifier (DOI)https://doi.org/10.1111/j.1467-9701.2010.01308.x
LanguageEnglish
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