Dollar and Exports

Review of Financial Studies, forthcoming

58 Pages Posted: 6 May 2020 Last revised: 6 Dec 2022

See all articles by Valentina Bruno

Valentina Bruno

American University - Department of Finance and Real Estate; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)

Hyun Song Shin

Bank for International Settlements (BIS)

Multiple version iconThere are 2 versions of this paper

Date Written: April 26, 2020


The strength of the US dollar has attributes of a barometer of dollar credit conditions, with a stronger dollar associated with tighter dollar credit conditions. Using finely disaggregated data on export shipments, we find that following a dollar appreciation exporters that are more reliant on dollar-funded bank credit for working capital suffer a greater decline in credit and slowdown in exports, including those into the United States. Our findings shed light on the role of the US dollar in the interaction between financial globalization and international trade and show a novel channel of exchange rate transmission that goes in the opposite direction to the competitiveness channel.

JEL Classification: F34, F42, F32, G15

Suggested Citation

Bruno, Valentina Giulia and Shin, Hyun Song, Dollar and Exports (April 26, 2020). Review of Financial Studies, forthcoming, Available at SSRN: or

Valentina Giulia Bruno

American University - Department of Finance and Real Estate ( email )

Kogod School of Business
4400 Massachusetts Ave., N.W.
Washington, DC 20016-8044
United States


Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Hyun Song Shin (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002


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