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): 120–122. https://doi.org/10.1162/asep_a_00778 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): 120–122. doi: https://doi.org/10.1162/asep_a_00778 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 Deng-Shing Huang, Institute of Economics, Academia Sinica: The paper aims to investigate the impact of global linkage on exchange elasticity of firm's exports, using Korean firm-level data from 2006 to 2015. The empirical strategy is quite straightforward but suitable. Only firms involving export are included in the sample, and the total sample is then divided into paired subsamples, that is, firms with/without foreign ownership; firms with/without foreign subsidiaries. The estimated coefficients of log real effective exchange rate (i.e., exchange rate elasticity) are then compared between each pair of subsamples. Empirical results show that the estimated exchange rate elasticity is lower (closer to zero) or insignificant for the subsample of firms with foreign ownership or having foreign subsidiary than that of its counter subsample. Further robustness empirical efforts are conducted to reconfirm the finding, by excluding export to other-than-foreign-subsidiary firms, or by considering industry-specific share of imported import share. The paper... You do not currently have access to this content.