Exchange Rates, Exports and FDI: A Microeconometric Analysis

University of Nottingham Research Paper No. 2008/09

37 Pages Posted: 13 Mar 2008

See all articles by David Greenaway

David Greenaway

University of Nottingham - School of Economics

Richard Kneller

University of Nottingham

Xufei Zhang

University of Nottingham

Abstract

Our focus is the effects of exchange rate movements on firm decisions on export market entry and export intensity. Using data on UK manufacturing firms we find that exchange rate movements have little effect on firm export participation but have a significant impact on export shares. We also investigate the effects of exchange rate movements on the export behaviour of multinationals, and find important differences according to country of origin. Multinationals firms originating from outside the European Union are less affected by changes in the exchange rate compared to those inside, whose reactions are similar to domestic firms.

Keywords: Exchange rate movements, export share, multinational firms

JEL Classification: F23, F31, F36

Suggested Citation

Greenaway, David and Kneller, Richard and Zhang, Xufei, Exchange Rates, Exports and FDI: A Microeconometric Analysis. University of Nottingham Research Paper No. 2008/09. Available at SSRN: https://ssrn.com/abstract=1104612 or http://dx.doi.org/10.2139/ssrn.1104612

David Greenaway (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom
+44 115 951 5469 (Phone)
+44 115 951 4159 (Fax)

Richard Kneller

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Xufei Zhang

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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