Export modes and firms’ adjustments to exchange rate movements

Stefano Bolatto, Marco Grazzi, Chiara Tomasi

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

Abstract

The paper provides novel evidence on the heterogeneous response of exporting firms to exchange rate movements. Italian firm-level trade data by product and destination indeed unveil that adjustments to exchange rate variation substantially differ across export modes. The estimates show that, in the event of a domestic currency appreciation, export intermediaries react by decreasing more their price – and less their export volume – than direct manufacturing exporters; and that the different response of direct exporters and wholesale firms is not driven by firm heterogeneity in size or productivity. By examining the aggregate implications of such micro-level findings, the paper documents that, following an appreciation, aggregate bilateral exports routed through wholesale firms tend to decline by less than total direct exports. Overall, our results suggest that, in addition to facilitating trade, export intermediation may substantially contribute to stabilizing trade patterns across countries.
Lingua originaleEnglish
pagine (da-a)1-22
Numero di pagine22
RivistaEuropean Economic Review
Volume141
DOI
Stato di pubblicazionePubblicato - 2022

Keywords

  • Double marginalization
  • Exchange rate pass-through
  • Export intermediation
  • Export mode selection
  • Heterogeneous markups
  • Pricing-to-market
  • Productivity sorting

Fingerprint

Entra nei temi di ricerca di 'Export modes and firms’ adjustments to exchange rate movements'. Insieme formano una fingerprint unica.

Cita questo