Menu Content/Inhalt
Seminars Print
previous year previous month next month next year
See by year See by month See by week See Today Search Jump to month
Nicolas Berman, Geneva Print
Friday, 27 May 2011, 12:15 - 13:15

Nicolas Berman, Graduate Institute of International and Development Studies

How do Different Exporters React to Exchange Rate Changes? Theory, empirics and aggregate implications

Abstract: This paper analyzes the heterogenous reaction of exporters to exchange rate changes using a very rich French firm-level dataset with destination-specific export values and volumes on the period 1995-2005. We find that high-performance firms react to a depreciation by increasing more their markup and by increasing less their export volume. Firms above the median in terms of TFP react to a 10% depreciation by increasing their destination-specific export price by around 2%. Those below the median do not change their price significantly. This heterogeneity in pricing to market is consistent with models where the demand elasticity decreases with firm performance. Since aggregate exports are concentrated on high productivity firms, precisely those that absorb more exchange rate movements in their markups, heterogenous pricing to market can partly explain the weak impact of exchange rate movements on aggregate exports.
Location: R42.2.113
Contact: Claude Adan, This e-mail address is being protected from spam bots, you need JavaScript enabled to view it