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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19831| Title: | Financial Market Imperfections and the impact of exchange rate movements on exports |
| Keywords: | F37 F32 F10 ddc:330 International Trade Exchange Rate Movements Financial Development Financial Market Imperfections |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | This paper studies the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we show that the impact of a depreciation will be less positive - or even negative - for a country as: (i) firms borrow in foreign currency ; (ii) they are credit constrained ; (iii) they are specialized in industries that require more external capital; (iv) the depreciation's or devaluation's magnitude is large. This last result confirms the existence of a non-linear relationship between an exchange rate depreciation and a country's exports reaction when financial imperfections are observed. This work offers a new explanation for the consequences of recent currency crises in middle income countries. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19831 |
| Other Identifiers: | http://hdl.handle.net/10419/19831 ppn:517780798 RePEc:zbw:gdec06:4726 |
| Appears in Collections: | EconStor |
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