Exchange Rate Movements, Firm-Level Exports and Heterogeneity

Firm Strategy and Economic Exposure to Foreign Exchange Rate Movements

Comparative Advantage, Exchange Rate and Exports in China

Based on revealed comparative advantage indices, the patterns of China's exports are studied empirically at not only national level but also provincial level. The statistic results have demonstrated that China has changed its export strategy to coincide with the law of comparative advantage. However, there is a distinct difference in export patterns between the coastal region and the interior r...

Exchange Rate Exposure and Firm Dynamics

This paper develops a firm-dynamics model with heterogenous firms and endogenous currency debt composition to jointly study financing and investment decisions in developing economies. In our model, foreign currency borrowing arises from a trade-off between aggregate deviations from the risk-free uncovered interest rate parity and firms’ growth potential. Crucially, there is crosssectional heter...

Exchange Rate Uncertainty and Firm Pro

1 Introduction

Are Chinese Exports Sensitive to Changes in the Exchange Rate?

This paper builds a model of two types of Chinese exports, those processed and assembled laregely from imported inputs ("processed" exports) and "nonprocessed" exports. Based on this model, the sensitivity of Chinese exports to exchange rate changes is empirically examined. Unlike previous work, the estimation period includes the net real appreciation of the renminbi that has occurred over the ...