EconPapers    
Economics at your fingertips  
 

Exchange Rates and Exports: Evidence from Manufacturing Firms in the UK

Sir David Greenaway (), Richard Kneller () and Xufei Zhang ()

Discussion Papers from University of Nottingham, GEP

Abstract: Our focus is the effects of exchange rate movements on firm decisions on export market entry and exit and export intensity. The analysis breaks down export adjustments between changes in export share by existing exporters and changes due to entry to and exit from export markets. Using data on a large sample of UK manufacturing firms, we find that exchange rate movements have little effect on firm's export participation and exit decisions. However, they do have a significant impact on export shares after entry. The responsiveness of the export share to exchange rate changes is not quantitatively small: one index point depreciation in the REER index will increase export share by about 1.28 percent. We also investigate the effects of exchange rate movements on the export behavior of multinationals, and find their export behavior is less likely to be affected by exchange rate changes than that of indigenous firms.

Keywords: Exchange rate movements; export share; multinational firms (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
https://www.nottingham.ac.uk/gep/documents/papers/2007/07-13.pdf (application/pdf)

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:not:notgep:07/13

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, GEP School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().

 
Page updated 2020-01-14
Handle: RePEc:not:notgep:07/13