Real exchange rate fluctuations and the dynamics of retail trade industries on the U.S.-Canada border

Jeffrey Campbell and Beverly Lapham

No WP-02-17, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: Consumers living near the U.S.-Canada border can shift their expenditures between the two countries, so real exchange rate fluctuations can act as demand shocks to border areas' retailers. Using annual county-level data, we estimate the effects of real exchange rates on the number of establishments and their average employment in border counties for four retail industries. In three of the four industries we consider, the number of operating establishments responds either contemporaneously or with a lag of one year, so long-run changes in net entry in fact occur quickly enough to matter for short-run fluctuations.

Keywords: Foreign exchange rates; Retail trade (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-ent, nep-ifn and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.chicagofed.org/digital_assets/publicati ... s/2002/wp2002-17.pdf (application/pdf)

Related works:
Journal Article: Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U. S.-Canada Border (2004)
Working Paper: Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U.S.-Canada Border (2001)
Working Paper: Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U.S.-Canada Border (2000)
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:fip:fedhwp:wp-02-17

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Paper Series from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Lauren Wiese ().