Comments on Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries

Abstract

June 01 2020 Comments on Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2020 by the Asian Economic Panel and the Massachusetts Institute of Technology2020Asian Economic Panel and the Massachusetts Institute of Technology Asian Economic Papers (2020) 19 (2): 119. https://doi.org/10.1162/asep_a_00777 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments on Exchange Rates and Firm Exports: The Role of Foreign Ownership and Foreign Subsidiaries. Asian Economic Papers 2020; 19 (2): 119. doi: https://doi.org/10.1162/asep_a_00777 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Shigeyuki Abe, Kyoto University: Using Korean firm-level data, this paper finds that the exchange rate elasticities of firm exports are significant and negative for domestic firms or firms with no foreign subsidiary, whereas they are insignificant for foreign-owned firms or firms with foreign subsidiaries. Firms with a higher global value chain integration measure or more imported intermediate inputs have significantly lower exchange rate elasticities of firm exports. The authors conclude, accordingly, that developments in global production linkages in the last decade play an essential role in explaining lower exchange rate elasticity on exports. My greatest dissatisfaction with the paper is in regard to groupings for regression. Domestic ownership (32,988 firms), foreign ownership (3,206), firms with no foreign subsidiary (21,410), and firms with foreign subsidiary (14,740) are separately and exclusively grouped in the paper. Assuming all the foreign ownership is with foreign subsidiary, domestic ownership with foreign subsidiary should total 11,534... You do not currently have access to this content.