 Financial Market Imperfections and the Impact of Exchange Rate Movements on ExportsNicolas Berman () and Antoine Berthou Post-Print from HAL Abstract: This paper analyzes empirically the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we find that the impact of a depreciation on exports will be less positive--or even negative--for a country if: (i) firms borrow in foreign currency; (ii) they are credit constrained; (iii) they are specialized in industries that require more external capital; (iv) the magnitude of depreciation or devaluation is large. This last result emphasizes the existence of a nonlinear relationship between an exchange rate depreciation and the reaction of a country's exports when financial imperfections are observed. This offers a new explanation for the consequences of recent currency crises in middle-income countries. Date: 2009-02 Published in Review of International Economics, 2009, 17 (1), pp.103-120. ⟨10.1111/j.1467-9396.2008.00781.x⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00650665 DOI: 10.1111/j.1467-9396.2008.00781.x Access Statistics for this paper More papers in Post-Print from HAL |
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