Monetary uncertainty and trade in Eastern Europe and Central Asia: A firm-level analysis
Metadata
Show full item recordcomunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONThis resource is restricted
https://doi.org/10.1016/j.ibusrev.2016.10.007 |
Metadata
Title
Monetary uncertainty and trade in Eastern Europe and Central Asia: A firm-level analysisDate
2017-06Publisher
ElsevierBibliographic citation
MARTÍNEZ-ZARZOSO, Inmaculada; JOHANNSEN, Florian. Monetary uncertainty and trade in Eastern Europe and Central Asia: A firm-level analysis. International Business Review, 2017, vol. 26, no 3, p. 476-490.Type
info:eu-repo/semantics/articlePublisher version
http://www.sciencedirect.com/science/article/pii/S0969593116302396Subject
Abstract
This paper uses firm-level data to investigate the effects of monetary uncertainty and political instability on the extensive and intensive margins of trade (exports and imports) in Eastern Europe and Central Asia. ... [+]
This paper uses firm-level data to investigate the effects of monetary uncertainty and political instability on the extensive and intensive margins of trade (exports and imports) in Eastern Europe and Central Asia. The former is related to exchange rate volatility, currency regimes and internal hedging, whereas the latter is related to the political regime in question. We consider 26 countries, most of them small, with poorly-developed financial markets, and in which exchange rate fluctuations and political instability are relatively high. The main results are threefold. First, we find a robust negative effect of exchange rate volatility on firms' probability of exporting (extensive margin) and on their export intensity (intensive margin). Second, we find a significant positive impact of binding currency agreements in the form of euro or ERM II membership, mainly on the extensive margin of trade. Moreover, we show that being party to those agreements allows firms to engage in international trade with a lower degree of internal hedging. Third, we make the case that political stability is related to an increase in exports. [-]
Rights
http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/restrictedAccess
info:eu-repo/semantics/restrictedAccess
This item appears in the folowing collection(s)
- ECO_Articles [696]