Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries

Gabriel Bruneau and Kevin Moran

Staff Working Papers from Bank of Canada

Abstract: We estimate the link between exchange rate fluctuations and the labour input of Canadian manufacturing industries. The analysis is based on a dynamic model of labour demand, and the econometric strategy employs a panel two-step approach for cointegrating regressions. Our data are drawn from a panel of 20 manufacturing industries from the KLEMS database and cover a long sample period that includes two full cycles of appreciation and depreciation of the Canadian dollar. Our results indicate that exchange rate fluctuations have significant long-term effects on the labour input of Canada’s manufacturing industries, that these effects are stronger for trade-oriented industries, and that these long-term impacts materialize only gradually following shocks.

Keywords: Econometric and statistical methods; Exchange rate regimes; Exchange rates; Labour markets; Recent economic and financial developments (search for similar items in EconPapers)
JEL-codes: E E2 E24 F F1 F14 F16 F3 F31 F4 F41 J J2 J23 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2015
New Economics Papers: this item is included in nep-lma, nep-mac and nep-opm
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Exchange rate fluctuations and labour market adjustments in Canadian manufacturing industries (2017)
Journal Article: Exchange rate fluctuations and labour market adjustments in Canadian manufacturing industries (2017)
Working Paper: Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries (2012)
Working Paper: Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocawp:15-45

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