Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries

2020 ◽  
Vol 19 (2) ◽  
pp. 103-118
Author(s):  
Hyelin Choi ◽  
Hyo Sang Kim
Keyword(s):  
Exchange Rate ◽  
Value Chain ◽  
Foreign Ownership ◽  
Foreign Subsidiaries ◽  
Firm Level ◽  
Level Data ◽  
Exchange Rate Movements ◽  
Negative Effect ◽  
Firm Exports

This paper examines the role of global production linkages on exchange rate elasticities by using Korean firm-level data. Firms with foreign ownership or with foreign subsidiaries, which are linked to global production, tend to weaken the effects of exchange rate movements on firm exports. We find the exchange rate elasticities of firm exports are significant and tend to have a negative effect on domestic firms or firms with no foreign subsidiary. In contrast, the results show an insignificant effect on foreign-owned firms or firms with foreign subsidiaries. After controlling for the export to foreign affiliates, we still find the estimated exchange rate elasticities of exports to be statistically insignificant, although it has a negative and relatively large impact for firms with global production linkages. Moreover, firms with a higher global value chain integration measure or more imported intermediate inputs have a significantly lower exchange rate elasticity of exports. This indicates that the developments in global production linkages have an important role in explaining lower exchange rate elasticity to exports.

scholarly journals Job Quality In The Micro And Small Business Sector In Ethiopia: Evidence From Firm-Level Data

2021 ◽  
Author(s):  
Berihu Assefa Gebrehiwot
Keyword(s):  
Poverty Reduction ◽  
Occupational Safety ◽  
Job Creation ◽  
Job Quality ◽  
Small Enterprises ◽  
Firm Level ◽  
Highly Educated ◽  
Level Data ◽  
Micro And Small Enterprises

Abstract Using a large dataset from the 10 largest cities in Ethiopia, this paper studies what entrepreneurial characteristics and attributes contribute to quality job creation in the micro and small enterprises (MSE) sector. We measure job quality in two ways – i) using wage and contract, and ii) health and occupational safety variables. We find that micro and small enterprises that create quality jobs tend to be operated by highly educated and experienced entrepreneurs. This highlights the role of human capital in quality job creation and poverty reduction. Further, we find that micro and small enterprises that create quality jobs tend to be larger in size and managed by professionally recruited managers.

scholarly journals EFEK KETERBUKAAN PERDAGANGAN PADA VOLATILITAS NILAI TUKAR

2019 ◽  
Vol 10 (1) ◽  
pp. 38-45
Author(s):  
Wayrohi Meilvidiri ◽  
Syahruddin Syahruddin ◽  
Romualdus Turu Putra Maro Djanggo
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Trade Openness ◽  
Exchange Rate Volatility ◽  
Normality Test ◽  
Lm Test ◽  
Exchange Rate Movements ◽  
Negative Effect ◽  
The Exchange Rate ◽  
The Impact

This study uses the q to q dataset for the period 2011-2018, to examine the effect of trade openness on the exchange rate, on the other hand variable money supply, inflation and GDP growth and high-low exchange rates (dummy) will smooth the impact of shocks to the exchange rate . Using the OLS econometric estimator to see the effect of variables and the ARCH method to measure the uncertainty of exchange rate movements. Estimation results show that trade openness (open trade index); the money supply (money supply) and the high-low peak value of the exchange rate have a significant positive effect while the growth variable has a significant negative effect on exchange rate volatility. The LM test simultaneously found ARCH in residual data in lag 1 and lag 2. The normality test found abnormal residuals, while the residual heteroscedasticity test showed no ARCH problems in the last residuals.

scholarly journals The Role of Oil Prices in Exchange Rate Movements: The CIS Oil Exporters

Economies ◽  
2017 ◽  
Vol 5 (2) ◽  
pp. 13 ◽  
Author(s):  
Fakhri Hasanov ◽  
Jeyhun Mikayilov ◽  
Cihan Bulut ◽  
Elchin Suleymanov ◽  
Fuzuli Aliyev
Keyword(s):  
Exchange Rate ◽  
Oil Prices ◽  
Exchange Rate Movements

scholarly journals Creative Destruction of Industries: Yokohama City in the Great Kanto Earthquake, 1923

2019 ◽  
Vol 79 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Tetsuji Okazaki ◽  
Toshihiro Okubo ◽  
Eric Strobl
Keyword(s):  
Creative Destruction ◽  
Manufacturing Industries ◽  
Firm Level ◽  
Machine Technology ◽  
Kanto Earthquake ◽  
Level Data ◽  
Firm Level Data ◽  
Before And After

The Great Kanto Earthquake occurred on 1 September 1923 and inflicted serious damage on Yokohama City. About 90 percent of the factories in Yokohama City were burnt down or completely destroyed. However, these manufacturing industries appear to have swiftly recovered in the aftermath of the damage. This article investigates the role of creative destruction due to the Great Kanto Earthquake. Using firm-level data on capital (horsepower of motors) before and after the earthquake, we find substantial creative destruction, that is, upgrade of machine technology and/or survival of efficient firms. We find further collaborating evidence of this at the prefecture level.

The Effect of Deregulation on Employee Earnings: Pilots, Flight Attendants, and Mechanics, 1959–1992

ILR Review ◽  
1996 ◽  
Vol 49 (2) ◽  
pp. 223-242 ◽  
Author(s):  
Pierre-Yves Crémieux
Keyword(s):  
Flight Attendants ◽  
Firm Level ◽  
Cross Sectional ◽  
Long Run ◽  
Airline Deregulation ◽  
Level Data ◽  
Negative Effect ◽  
Long Term Trends ◽  
Sectional Analysis

Previous studies of the effect of the 1978 Airline Deregulation Act on employee earnings have reported mixed results: some have found no negative long-run effect of deregulation and others have found a negative effect of up to 10%. Most of these studies relied on cross-sectional analysis of a few years' data. This paper, in contrast, examines the long-term trends in airline earnings, based on 34 years of newly collected firm-level data from the Department of Transportation's Form 41 and airline workers' unions. The author finds that although deregulation had no statistically significant effect on the earnings of mechanics, it strongly affected the earnings of flight attendants and pilots. Flight attendants' earnings were at least 12% lower by 1985 and 39% lower by 1992 than they would have been if deregulation had not occurred, and the corresponding shortfalls for pilots were 12% and 22%.

The Thai Currency Crisis: Financing Constraints, High Fixed Costs, and Corporate Governance

2005 ◽  
Vol 4 (2) ◽  
pp. 60-87 ◽  
Author(s):  
Robert Dekle ◽  
Cathy Karnchanasai ◽  
Pongsak Hoontrakul
Keyword(s):  
Scale Economies ◽  
Asian Financial Crisis ◽  
Financing Constraints ◽  
Fixed Costs ◽  
High Scale ◽  
Firm Level ◽  
Unit Costs ◽  
Level Data ◽  
Financing Costs

We examine the role of financing constraints in depressing output during the Asian financial crisis, using Thai firm-level data. From an output decline of 3.7 percent in our sample in 1998, we find that tightening financing constraints contributed to lowering output by 1.7 percent. We also find evidence of high scale economies or high fixed costs in Thai industries. With high fixed costs, small changes in unit costs or financing costs can lead to large changes in output. We interpret the high fixed costs as evidence of overinvestment prior to the crisis.

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