EconPapers    
Economics at your fingertips  
 

Exporters and shocks

Doireann Fitzgerald and Stefanie Haller

Journal of International Economics, 2018, vol. 113, issue C, 154-171

Abstract: We use micro data for Ireland to estimate the responses of export entry, export exit, and the export revenue of incumbent exporters to changes in tariffs and real exchange rates. Entry and revenue are much more responsive to tariffs than they are to real exchange rates. Our estimates translate into an elasticity of aggregate exports with respect to tariff changes of between −1.5 and −3.5 on impact, and between −2 and −5 in the long run. Comparable elasticities for real exchange rate changes are around 0.5 on impact, and between 0.6 and 0.8 in the long run. These estimates are consistent with estimates in the literature based on aggregate data. They provide further evidence that workhorse models of international trade and business cycles which impose identical responses must be modified in order to answer policy questions touching on both international trade and the current account.

Keywords: Exporters; Tariffs; Real Exchange Rates; International Elasticity Puzzle (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199618300795
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Exporters and Shocks (2017) Downloads
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:eee:inecon:v:113:y:2018:i:c:p:154-171

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-02-05
Handle: RePEc:eee:inecon:v:113:y:2018:i:c:p:154-171