Export Rivalry and Exchange Rate Pass-Through
Xinyu Hou and
Yong Tan ()
MPRA Paper from University Library of Munich, Germany
In this paper we investigate the influence of market rivalry on firm-level exchange rate pass-through. Similar to Bloom et al. (2013), we define market rivalry as product market proximity, and expect the cross market spillovers, i.e., through leaked information or reputation, to affect firm-level export price. Using a dataset from comprehensive Chinese exporters during 2000-2007, we find supporting evidence of this influence. Firms that face a high degree of market rivalry are less responsive to exchange rate fluctuations, which suggests a higher exchange rate pass-through. The influence of market rivalry is stronger on firms that export consumption and heterogeneous products, and to developed countries. Our results are robust to different measures of market rivalry and specifications.
Keywords: Market Rivalry; Exchange Rate Pass-through; Cross Markets Spillovers (search for similar items in EconPapers)
JEL-codes: F14 F31 F33 O19 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/83369/1/MPRA_paper_83369.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83369
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().