Exchange rate exposure for exporting and domestic firms in central and Eastern Europe

Raheel Asif and Michael Frömmel

Emerging Markets Review, 2022, vol. 51, issue PA

Abstract: We analyze the exchange rate exposure of firms in Russia and European Union (EU) accession countries from Central and Eastern Europe: Poland, Hungary, and the Czech Republic. We control for potential effects of exchange rate regimes, the subprime mortgage and Russian financial crisis, EU accession, and the turn-of-the-year effect. We find significant exposure for 60% and 52% of firms in the CEEC-3 and Russia, respectively. Magnitude and direction of firms' exposure depends on the currency pair (versus either the euro or U.S. dollar) and differs between CEEC-3 and Russia. Differences may result from dissimilar exposure channels in the respective economies.

Keywords: Exchange rate exposure; Transition economies; Central and Eastern Europe; International finance (search for similar items in EconPapers)
JEL-codes: F3 G1 G12 G15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:51:y:2022:i:pa:s1566014121000716

DOI: 10.1016/j.ememar.2021.100863

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