Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/122031 
Erscheinungsjahr: 
2015
Schriftenreihe/Nr.: 
Queen's Economics Department Working Paper No. 1349
Verlag: 
Queen's University, Department of Economics, Kingston (Ontario)
Zusammenfassung: 
We use comprehensive firm-level data to estimate the responses of heterogeneous Canadian retail firms to real exchange rate movements. Our analysis focuses on a period characterized by large fluctuations in the Canadian dollar, providing an opportunity to quantify both intensive and extensive margin responses in retail industries to real exchange rate shocks and to examine how those responses differ across firms, locations, and sub-industries. Our results indicate that a real Canadian currency appreciation significantly reduces a retailer's sales, employment, and profits. The strength of this negative effect is decreasing in the distance of a retailer from the US-Canada border. We do not find evidence of a strong relationship between real exchange rate movements and the number of operating firms nor the probability of firm survival. These findings are consistent with the view that a real Canadian dollar appreciation increases cross-border shopping by Canadians, resulting in a negative demand shock for Canadian retailers, and the dominant response by firms to such a shock is through the intensive margin.
Schlagwörter: 
Firm Dynamics
Retail Trade
Exchange Rates
Cross-border Shopping
JEL: 
F10
F14
L81
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
475.33 kB





Publikationen in EconStor sind urheberrechtlich geschützt.