Trade Sensitivity to Exchange Rates in the Context of Intra-Industry Trade / / Yoko Oguro, Kyoji Fukao, Yougesh Khatri

• Record Nr.: UNINA9910788237503321
• Autore: Oguro Yoko
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2008
• ISBN: 1-4623-1039-7; 9786612840869; 1-282-84086-X; 1-4518-6993-2; 1-4519-9435-4
• Descrizione fisica: 1 online resource (22 pages) : illustrations, tables
• Collana: IMF Working Papers; IMF working paper ; ; WP/08/134
• Altri autori (Persone): FukaoKyoji; KhatriYougesh
• Disciplina: 382
• Soggetti: International trade; Foreign exchange rates; Exports and Imports; Foreign Exchange; Money and Monetary Policy; Trade: General; Empirical Studies of Trade; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems; Currency; Foreign exchange; International economics; Monetary economics; Exchange rates; Exports; Real exchange rates; Trade balance; Currencies; Balance of trade; Money; China, People's Republic of
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: Bibliographic Level Mode of Issuance: Monograph
• Nota di bibliografia: Includes bibliographical references.
• Sommario/riassunto: This paper theoretically and empirically investigates export sensitivity to exchange rates in the context of intra-industry trade (IIT). It is assumed that more IIT implies a smaller elasticity of substitution among differentiated products and vice versa. The model presented suggests the gap in production costs between two countries has an influence on IIT as well. Industry-level pane regressions of thirty-eight trading pairs provide strong empirical support for the idea that the exchange rate sensitivity of exports declines in concert with the extent of ITT. An obvious policy implication is that the effectiveness of exchange rates in addressing trade imbalances will diminish as the extent of IIT increases.