Does real exchange rate depreciation increase productivity?

2020 ◽  
pp. 134-168
Author(s):  
Bo-Young Choi ◽  
Ju Hyun Pyun
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Increase Productivity ◽  
Exchange Rate Depreciation

The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia

2018 ◽  
Vol 53 (4) ◽  
pp. 211-224 ◽  
Author(s):  
Gan-Ochir Doojav
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Balance ◽  
Developing Economies ◽  
Jel Classification ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Depreciation

For resource-rich developing economies, the effect of real exchange rate depreciation on trade balance may differ from the standard findings depending on country specific characteristics. This article employs vector error correction model to examine the effect of real exchange rate on trade balance in Mongolia, a resource-rich developing country. Empirical results show that exchange rate depreciation improves trade balance in both short and long run. In particular, the well-known Marshall–Lerner condition holds in the long run; however, there is no evidence of the classic J-curve effects in the short run. The results suggest that the exchange rate flexibility may help to deal effectively with current account deficits and exchange rate risk. JEL Classification: C32, C51, F14, F32

scholarly journals The Effect of Trade Liberalization on Firm Entry and Exit in Punjab, Pakistan

2014 ◽  
Vol 19 (1) ◽  
pp. 67-89
Author(s):  
Marjan Nasir
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Liberalization ◽  
Manufacturing Sector ◽  
Firm Entry ◽  
Entry And Exit ◽  
Export Industries ◽  
The Impact ◽  
Firm Entry And Exit ◽  
Exchange Rate Depreciation

This study focuses on the impact of trade liberalization on firm entry and exit in Punjab’s export manufacturing sector over the decade 2001–10. As far as the province’s export industries are concerned, real exchange rate depreciation attracts new firms but also leads weaker firms to exit. A reduction in local or international tariffs, however, has no significant impact on firm entry or exit.

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