Heterogeneous Effect of Exchange Rates on Firms’ Exports: Role of Labor Intensity
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Title: |
Heterogeneous Effect of Exchange Rates on Firms’ Exports: Role of Labor Intensity |
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Number: |
21/15 |
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Author(s): |
Kurmaş Akdoğan, Yusuf Kenan Bağır, Huzeyfe Torun |
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Language: |
English |
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Date: |
July 2021 |
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Abstract: |
Using an extensive firm-level database that combines balance sheet information, social security registry and customs data, we examine whether the relationship between the exchange rate and exports change with the degree of labor-intensity of production. The results based on manufacturing firms in Turkey suggest that the sensitivity of labor-intensive firms to the exchange rate is higher than that of the less labor-intensive ones, both at the intensive and extensive margins of exports. However, we do not find a significant impact on the export prices varying across the labor-intensity of the firms. Our results are robust to alternative definitions of labor-intensity and exchange rates, and the use of different time spans. |
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Keywords: |
Exports, Exchange rates, Labor-intensity |
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JEL Codes: |
F14; F16; D22 |
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