In a small open economy fluctuations in the real exchange rate can affect plant turnover, and thus aggregate productivity, by altering the makeup of plants that populate the market. An appreciation of the local currency increases the level of competition in the domestic market as import...

The paper investigates the relationship between corporate hedging and product market competition. Using a broad sample of multiple commodity-inputs industries over the period of 1994-2008, the paper examines whether an unfavorable commodity shock has a long term effect on unhedged firms. I find...