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Persistent differences in interest rates across countries account for much of the profitability of currency carry trade strategies. "Commodity currencies'' tend to have high interest rates while low interest rate currencies belong to exporters of finished goods. This pattern arises in a...
Persistent link: https://www.econbiz.de/10012459290
International trade became much less multilateral during the 1930s. Previous studies, looking at aggregate trade flows, have argued that discriminatory trade policies had comparatively little to do with this. Using highly disaggregated information on the UK's imports and trade policies, we find...
Persistent link: https://www.econbiz.de/10012455517
identify specific barriers to exporting and to measure their importance. We develop a model of firm-level export dynamics that … response of total export sales to an exchange rate shock exceeds the 1-year response by about 40 percent, with the 1-year …
Persistent link: https://www.econbiz.de/10012599390
Customs data reveal heterogeneity and granularity of relationships among buyers and sellers. A key insight is how more exports to a destination break down into more firms selling there and more buyers per exporter. We develop a quantitative general equilibrium model of firm-to-firm matching that...
Persistent link: https://www.econbiz.de/10012814460
This paper is a theoretical analysis of the factors influencing production location decisions by a multinational corporation. It starts with a simple model of optimization for a firm facing the choice between exporting and producing abroad a single differentiated final product and then develops...
Persistent link: https://www.econbiz.de/10012478625
export markets. Although this mechanism is often mentioned in policy documents, a significant share of econometric studies … export entry. I estimate my model on standard firm-level data and find substantial additional productivity gains from … entering export markets …
Persistent link: https://www.econbiz.de/10012462109
their mode of export - either directly or indirectly through an intermediary. The model predicts that intermediaries will be …
Persistent link: https://www.econbiz.de/10012462946
We develop a model of international trade with export quality requirements and two dimensions of firm heterogeneity. In … empirical fact that firm size is not monotonically related with export status: there are small firms that export and large firms … heterogeneity as they imply no variation in export status after size is controlled for. We find strong support for the predictions …
Persistent link: https://www.econbiz.de/10012463720
Between 1992 and 2002, the Japanese Import Price Index registered a decline of almost 9 percent and Japan entered a period of deflation. We show that much of the correlation between import prices and domestic prices was due to formula biases. Had the IPI been computed using a pure Laspeyres...
Persistent link: https://www.econbiz.de/10012464707
foreign tariffs will induce these firms to simultaneously export and invest in productivity. In contrast, lower foreign … tariffs will induce higher-productivity firms to export without investing, as in Melitz (2003). We model this econometrically …
Persistent link: https://www.econbiz.de/10012465353