EconStor >
Georg-August-Universität Göttingen >
cege - Centrum für Europa-, Governance- und Entwicklungsforschung, Universität Göttingen >
cege-Diskussionspapiere, Universität Göttingen >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/22155
  
Title:Labour Demand and Exchange Rate Volatility PDF Logo
Authors:Broll, Udo
Hansen, Sabine
Issue Date:2004
Series/Report no.:CeGE discussion paper 28
Abstract:The purpose of this paper is to assess under what conditions exchange rate volatility exerts a positive effect on a firm's labour demand. As the exchange rate volatility increases, so does the value of the export option provided the firm under study is flexible. Flexibility is important because it gives the firm option value. Higher volatility increases the potential gains from trade and may increase the demand for labour. This may explain part of the mixed empirical findings regarding the effects of exchange rate risk on labour demand and international trade.
Subjects:Labour demand
Exchange rate risk
Risk aversion
Flexibility
Real option
International trade
JEL:F16
F41
F31
F23
Document Type:Working Paper
Appears in Collections:cege-Diskussionspapiere, Universität Göttingen

Files in This Item:
File Description SizeFormat
Broll_Hansen_28.pdf198.6 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/22155

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.