Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168035
Authors: 
Huang, Xiaobing
Year of Publication: 
2017
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Year:] 2017 [Volume:] 11 [Issue:] 2017-23 [Pages:] 1-27
Abstract: 
This paper highlights the relationship between foreign exchange rate fluctuations and firms' export market dynamics using a Chinese firm-level production data and a firm-level trade data over the period of 2000-2006. This study adopts a discrete-time survival model in our empirical investigation and further executes several extensions and robustness checks to the baseline results. The main results of the paper can be summarized as follows: First, an exchange rate appreciation increases the likelihood of export market exit and decreases the probability of export market entry. Second, high productivity firms are less likely to exit from export markets and more likely to enter export markets in the period of exchange rate appreciation. Third, exchange rate appreciation decreases the likelihood of export market entering and increases the likelihood of export market exiting more for private-owned firms, young firms and non-eastern firms. Finally, other sources of heterogeneity, such as extensive margins, import demand elasticity, different destinations, U.S. dollar peg, and the liberalization of trading rights is also important to the effects of exchange rate changes.
Subjects: 
exchange rate movements
export market dynamics
firm heterogeneity
China
JEL: 
F14
F31
F32
F41
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

Files in This Item:
File
Size
469.69 kB





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