Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity
Using an extensive firm-level database that combines balance sheet information, social security registry and customs data, we examine whether the relationship between the exchange rate and exports change with the degree of labor-intensity of production. The results based on manufacturing firms in Tü...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-09-01
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| Series: | Central Bank Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1303070123000252 |
| _version_ | 1797642562407759872 |
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| author | Kurmaş Akdoğan Yusuf Kenan Bağır Huzeyfe Torun |
| author_facet | Kurmaş Akdoğan Yusuf Kenan Bağır Huzeyfe Torun |
| author_sort | Kurmaş Akdoğan |
| collection | DOAJ |
| description | Using an extensive firm-level database that combines balance sheet information, social security registry and customs data, we examine whether the relationship between the exchange rate and exports change with the degree of labor-intensity of production. The results based on manufacturing firms in Türkiye suggest that the sensitivity of labor-intensive firms to the exchange rate is higher than that of the less labor-intensive ones, both at the intensive and extensive margins of exports. In addition, export product variety and export market variety of the labor-intensive firms increase more than the others during a currency depreciation. In particular, the increase in the exports of the labor-intensive firms is 2.7 percent higher than the increase in exports of the non-labor-intensive firms in case of a 10 percent decline in the real effective exchange rate. However, we do not find a significant impact on the export prices varying across the labor-intensity of the firms. Our results are robust to alternative definitions of labor-intensity and exchange rates, and the use of different time spans. |
| first_indexed | 2024-03-11T14:01:59Z |
| format | Article |
| id | doaj.art-434ba4a3555f469f8614a92cdc53f0f9 |
| institution | Directory Open Access Journal |
| issn | 1303-0701 |
| language | English |
| last_indexed | 2024-03-11T14:01:59Z |
| publishDate | 2023-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Central Bank Review |
| spelling | doaj.art-434ba4a3555f469f8614a92cdc53f0f92023-11-02T04:13:17ZengElsevierCentral Bank Review1303-07012023-09-01233100130Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensityKurmaş Akdoğan0Yusuf Kenan Bağır1Huzeyfe Torun2Structural Economics Research Department, Central Bank of the Republic of Türkiye, Ümraniye, İstanbul, Türkiye; Corresponding author.Data Governance and Statistics, Central Bank of the Republic of Türkiye, Ümraniye, İstanbul, TürkiyeStructural Economics Research Department, Central Bank of the Republic of Türkiye, Ümraniye, İstanbul, TürkiyeUsing an extensive firm-level database that combines balance sheet information, social security registry and customs data, we examine whether the relationship between the exchange rate and exports change with the degree of labor-intensity of production. The results based on manufacturing firms in Türkiye suggest that the sensitivity of labor-intensive firms to the exchange rate is higher than that of the less labor-intensive ones, both at the intensive and extensive margins of exports. In addition, export product variety and export market variety of the labor-intensive firms increase more than the others during a currency depreciation. In particular, the increase in the exports of the labor-intensive firms is 2.7 percent higher than the increase in exports of the non-labor-intensive firms in case of a 10 percent decline in the real effective exchange rate. However, we do not find a significant impact on the export prices varying across the labor-intensity of the firms. Our results are robust to alternative definitions of labor-intensity and exchange rates, and the use of different time spans.http://www.sciencedirect.com/science/article/pii/S1303070123000252F14F16D22 |
| spellingShingle | Kurmaş Akdoğan Yusuf Kenan Bağır Huzeyfe Torun Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity Central Bank Review F14 F16 D22 |
| title | Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity |
| title_full | Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity |
| title_fullStr | Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity |
| title_full_unstemmed | Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity |
| title_short | Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity |
| title_sort | heterogeneous effect of exchange rates on firms exports role of labor intensity |
| topic | F14 F16 D22 |
| url | http://www.sciencedirect.com/science/article/pii/S1303070123000252 |
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