Real Exchange Rate Volatility and Imports of Intermediate Inputs: A Microeconometric Analysis of Manufacturing Plants

Ricardo López Rago and Huong Nguyen

Review of International Economics, 2015, vol. 23, issue 5, 972-995

Abstract: This paper uses plant-level data from the manufacturing sector of Chile for the period 1995–2007 to examine the effect of real exchange rate (RER) volatility on imports of intermediate inputs at the micro level. Using input–output tables, we construct sector-level RERs relevant for input import decisions and find that increases in the RER and its volatility reduce the fraction of imported intermediate inputs used by plants, while plants' probability of importing is not affected. Thus, fluctuations in the RER affect the intensive margin of imports (the amount of inputs imported) but not the extensive margin (the decision to import).

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1111/roie.12192 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:23:y:2015:i:5:p:972-995

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().