Heterogeneous Effect of Exchange Rates on Firms’ Exports: Role of Labor Intensity

Kurmaş Akdoğan, Yusuf Bağır and Huzeyfe Torun ()

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: 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 Turkey 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. 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.

Keywords: Exports; Exchange rates; Labor-intensity (search for similar items in EconPapers)
JEL-codes: D22 F14 F16 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ara and nep-int
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Journal Article: Heterogeneous effect of exchange rates on firms’ exports: Role of labor intensity (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:2115

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