Exchange Rates and Trade Balances: Effects of Intra-Industry Trade and Vertical Specialization

نویسندگان

چکیده

To examine how changes in relative national prices affect trade flows, this study estimates the impact of industry-specific effective real exchange rates on industry-level balances, exports, and imports. We analyze variations intra-industry vertical specialization, which may both govern long-run relationship between flows. employ sample information from 13 manufacturing industries across five Asian countries 2001 to 2015. Rather than country-level aggregate measures, we use disaggregated rates, provide better measures help uncover different responses that are masked by data. Fixed-effect estimations reveal greater price competitiveness, as measured depreciation increases balances. find elasticity balances with respect declines specialization increases. There is also some limited evidence Taken together, our findings suggest global supply chains more important examining response rate changes. Importantly, these heterogeneous impacts imply policies regarding management be potency will ways.

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ژورنال

عنوان ژورنال: Open Economies Review

سال: 2021

ISSN: ['1573-708X', '0923-7992']

DOI: https://doi.org/10.1007/s11079-020-09612-4