Exchange Rate Uncertainty and Export Decisions in the UK

University of Nottingham, GEP Research Paper 2008/42

14 Pages Posted: 25 Jul 2009

See all articles by David Greenaway

David Greenaway

University of Nottingham - School of Economics

Richard Kneller

University of Nottingham

Xufei Zhang

University of Nottingham

Date Written: November 23, 2008

Abstract

Using data on UK manufacturing firms, we examine the effects of exchange rate uncertainty on firm decisions on export market entry and export intensity. The use of micro data and new measures of exchange rate uncertainty enable us to test for hysteresis effects in a new way and to test the sensitivity of results to a range of different measures. The results show that exchange rate uncertainty has little effect on firms’ export participation but a significant impact on export intensity.

Keywords: Exchange rate uncertainty, export share, hysteresis effects

JEL Classification: D81, F23, F31, F36

Suggested Citation

Greenaway, David and Kneller, Richard and Zhang, Xufei, Exchange Rate Uncertainty and Export Decisions in the UK (November 23, 2008). University of Nottingham, GEP Research Paper 2008/42. Available at SSRN: https://ssrn.com/abstract=1438056 or http://dx.doi.org/10.2139/ssrn.1438056

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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