Exchange Rate Exposure and Foreign Market Competition: Evidence from Japanese Firms

Robert Dekle ()

The Journal of Business, 2005, vol. 78, issue 1, 281-300

Abstract: In this paper, we focus on the impact of foreign competition on exposure, or the responsiveness of profits to fluctuations in exchange rates. We find that, of the 15 four-digit level Japanese export industries in our sample, 10 industries are better characterized as Cournot competitors in foreign markets, rather than colluding firms. Depending on the industry, exposure elasticities range from 0.5% to 8.5%, with an average of around 2.5%. These elasticities, on the whole, are much higher than those found in earlier research. Collusive exporters tend to have higher elasticities than competitive exporters.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://dx.doi.org/10.1086/426526 main text (application/pdf)
Access to the online full text or PDF requires a subscription.

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:ucp:jnlbus:v:78:y:2005:i:1:p:281-300

Access Statistics for this article

More articles in The Journal of Business from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().