Publication:
Exchange Rate Volatility, Financial Constraints, and Trade : Empirical Evidence from Chinese Firms
dc.contributor.author | Heericourt, Jerome | |
dc.contributor.author | Poncet, Sandra | |
dc.date.accessioned | 2014-02-04T16:31:39Z | |
dc.date.available | 2014-02-04T16:31:39Z | |
dc.date.issued | 2013-10 | |
dc.description.abstract | This paper studies how firm-level export performance is affected by Real Exchange Rate (RER) volatility and investigates whether this effect depends on existing financial constraints. The empirical analysis relies on export data for more than 100,000 Chinese exporters over the 2000-6 period. The results confirm a trade-deterring effect of RER volatility. Firms' decision to begin exporting and the exported value decrease for destinations with higher exchange rate volatility; besides, this effect is magnified for financially vulnerable firms. As expected, financial development seems to dampen this negative impact, especially on the intensive margin of export. These results provide micro-founded evidence suggesting that the existence of well-developed financial markets allows firms to hedge exchange rate risk. The results also support a key role of financial constraints in determining the macro impact of RER volatility on real outcomes. | en |
dc.identifier | http://documents.worldbank.org/curated/en/2013/10/18347947/exchange-rate-volatility-financial-constraints-trade-empirical-evidence-chinese-firms | |
dc.identifier.uri | http://hdl.handle.net/10986/16855 | |
dc.language | English | |
dc.language.iso | en_US | |
dc.publisher | World Bank, Washington, DC | |
dc.relation.ispartofseries | Policy Research Working Paper;No. 6638 | |
dc.rights | CC BY 3.0 IGO | |
dc.rights.holder | World Bank | |
dc.rights.uri | http://creativecommons.org/licenses/by/3.0/igo/ | |
dc.subject | ADJUSTMENT COSTS | |
dc.subject | AMERICAN ECONOMIC REVIEW | |
dc.subject | BANKING CRISES | |
dc.subject | BARRIER | |
dc.subject | BENCHMARK SPECIFICATION | |
dc.subject | BILATERAL EXCHANGE RATE | |
dc.subject | BILATERAL TRADE | |
dc.subject | BOND | |
dc.subject | BUDGET CONSTRAINT | |
dc.subject | BUSINESS CYCLES | |
dc.subject | CAPACITY BUILDING | |
dc.subject | CASH FLOWS | |
dc.subject | CENTRAL BANK | |
dc.subject | CHINESE YUAN | |
dc.subject | COLLATERAL | |
dc.subject | COMMODITY | |
dc.subject | COMMODITY PRICES | |
dc.subject | COMMON CURRENCIES | |
dc.subject | CONSUMER PRICE | |
dc.subject | CONVERTIBILITY | |
dc.subject | COUNTRY FIXED EFFECTS | |
dc.subject | COVARIANCE MATRIX | |
dc.subject | CREDIT CEILING | |
dc.subject | CREDIT CONSTRAINT | |
dc.subject | CREDIT CONSTRAINTS | |
dc.subject | CREDIT MARKETS | |
dc.subject | CREDIT RATIONING | |
dc.subject | CURRENCY | |
dc.subject | CURRENCY APPRECIATION | |
dc.subject | CURRENCY CRISES | |
dc.subject | CURRENCY DEPRECIATIONS | |
dc.subject | CURRENCY UNION | |
dc.subject | DEBT | |
dc.subject | DEPENDENT VARIABLE | |
dc.subject | DEPOSITS | |
dc.subject | DEPRECIATING EXCHANGE RATE | |
dc.subject | DEPRECIATIONS | |
dc.subject | DERIVATIVE | |
dc.subject | DESCRIPTIVE STATISTICS | |
dc.subject | DEVELOPING COUNTRIES | |
dc.subject | DEVELOPING COUNTRY | |
dc.subject | DEVELOPING ECONOMIES | |
dc.subject | DIVERSIFIED FIRMS | |
dc.subject | DUMMY VARIABLE | |
dc.subject | EARNINGS | |
dc.subject | ECONOMIC DEVELOPMENTS | |
dc.subject | ECONOMIC FLUCTUATIONS | |
dc.subject | ECONOMIC INSTABILITY | |
dc.subject | ECONOMIC PERFORMANCE | |
dc.subject | ECONOMIC POLICY | |
dc.subject | EFFECT OF VOLATILITY | |
dc.subject | EMERGING MARKETS | |
dc.subject | EURO | |
dc.subject | EXCHANGE MARKET | |
dc.subject | EXCHANGE RATE | |
dc.subject | EXCHANGE RATE APPRECIATION | |
dc.subject | EXCHANGE RATE CHANGES | |
dc.subject | EXCHANGE RATE FLUCTUATIONS | |
dc.subject | EXCHANGE RATE LEVEL | |
dc.subject | EXCHANGE RATE MOVEMENTS | |
dc.subject | EXCHANGE RATE POLICY | |
dc.subject | EXCHANGE RATE REGIME | |
dc.subject | EXCHANGE RATE RISK | |
dc.subject | EXCHANGE RATE SYSTEM | |
dc.subject | EXCHANGE RATE UNCERTAINTY | |
dc.subject | EXCHANGE RATE VOLATILITY | |
dc.subject | EXCHANGE RATES | |
dc.subject | EXCHANGE-RATE | |
dc.subject | EXPANSION OF EXPORTS | |
dc.subject | EXPLANATORY VARIABLES | |
dc.subject | EXPORT CAPACITY | |
dc.subject | EXPORT GOODS | |
dc.subject | EXPORT MARKET | |
dc.subject | EXPORT MARKETS | |
dc.subject | EXPORT PERFORMANCE | |
dc.subject | EXPORT SHARE | |
dc.subject | EXPORTER | |
dc.subject | EXPORTERS | |
dc.subject | EXPOSURE | |
dc.subject | EXTERNAL DEBT | |
dc.subject | EXTERNAL FINANCE | |
dc.subject | EXTERNAL FINANCING | |
dc.subject | FEDERAL RESERVE | |
dc.subject | FEDERAL RESERVE SYSTEM | |
dc.subject | FINANCIAL CONSTRAINTS | |
dc.subject | FINANCIAL CRISIS | |
dc.subject | FINANCIAL DATA | |
dc.subject | FINANCIAL DEVELOPMENT | |
dc.subject | FINANCIAL FACTORS | |
dc.subject | FINANCIAL LIBERALIZATION | |
dc.subject | FINANCIAL MARKETS | |
dc.subject | FINANCIAL SECTOR | |
dc.subject | FINANCIAL STUDIES | |
dc.subject | FINANCIAL SYSTEM | |
dc.subject | FINANCIAL SYSTEMS | |
dc.subject | FINANCIAL VULNERABILITY | |
dc.subject | FIRM PERFORMANCE | |
dc.subject | FIXED ASSETS | |
dc.subject | FIXED PEG | |
dc.subject | FIXED PEGS | |
dc.subject | FLOATING REGIME | |
dc.subject | FOREIGN CURRENCY | |
dc.subject | FOREIGN DEMAND | |
dc.subject | FOREIGN DIRECT INVESTMENT | |
dc.subject | FOREIGN INCOME | |
dc.subject | FORWARD EXCHANGE | |
dc.subject | HIGHER VOLATILITY | |
dc.subject | HOLDING | |
dc.subject | IMPACT OF VOLATILITY | |
dc.subject | IMPORT PRICE | |
dc.subject | IMPORTS | |
dc.subject | INCOME | |
dc.subject | INCOME VOLATILITY | |
dc.subject | INDUSTRIAL COUNTRIES | |
dc.subject | INTANGIBLE | |
dc.subject | INTANGIBLE ASSETS | |
dc.subject | INTERACTION TERM | |
dc.subject | INTERNAL FINANCE | |
dc.subject | INTERNATIONAL BANK | |
dc.subject | INTERNATIONAL ECONOMICS | |
dc.subject | INTERNATIONAL FINANCE | |
dc.subject | INTERNATIONAL FINANCIAL STATISTICS | |
dc.subject | INTERNATIONAL MONETARY FUND | |
dc.subject | INTERNATIONAL TRADE | |
dc.subject | INVESTMENT DYNAMICS | |
dc.subject | INVESTMENT EXPENDITURES | |
dc.subject | LIABILITY | |
dc.subject | LIBERALIZATION | |
dc.subject | LINK BETWEEN VOLATILITY | |
dc.subject | LIQUIDITY | |
dc.subject | LIQUIDITY CONSTRAINTS | |
dc.subject | LOCAL CURRENCY | |
dc.subject | LOCAL ECONOMY | |
dc.subject | LONG-TERM INVESTMENT | |
dc.subject | MACROECONOMIC VARIABLES | |
dc.subject | MACROECONOMICS | |
dc.subject | MARKET CONDITIONS | |
dc.subject | MARKET SIZE | |
dc.subject | MEASURE OF VOLATILITY | |
dc.subject | MICRO DATA | |
dc.subject | MISALIGNMENT | |
dc.subject | MONETARY ECONOMICS | |
dc.subject | MONETARY POLICY | |
dc.subject | NEW MARKETS | |
dc.subject | NOMINAL EXCHANGE RATE | |
dc.subject | NOMINAL EXCHANGE RATES | |
dc.subject | NONLINEAR EFFECTS | |
dc.subject | OPEN ECONOMIES | |
dc.subject | OTHER CURRENCIES | |
dc.subject | OUTPUT | |
dc.subject | OWNERSHIP STRUCTURE | |
dc.subject | POSITIVE COEFFICIENT | |
dc.subject | PRICE INDEX | |
dc.subject | PRICE VOLATILITY | |
dc.subject | PRIVATE INVESTMENT | |
dc.subject | RATE OF INVESTMENT | |
dc.subject | RATIONING | |
dc.subject | REAL DEPRECIATION | |
dc.subject | REAL EFFECTIVE EXCHANGE RATE | |
dc.subject | REAL EXCHANGE RATE | |
dc.subject | REAL EXCHANGE RATES | |
dc.subject | REVIEW OF ECONOMICS | |
dc.subject | ROBUSTNESS CHECK | |
dc.subject | ROBUSTNESS CHECKS | |
dc.subject | SHARE OF CAPITAL | |
dc.subject | STANDARD DEVIATION | |
dc.subject | STANDARD DEVIATIONS | |
dc.subject | STANDARD ERRORS | |
dc.subject | SUPPLY OF CREDIT | |
dc.subject | TOTAL CREDIT | |
dc.subject | TOTAL EXPORT | |
dc.subject | TOTAL IMPORT | |
dc.subject | TOTAL IMPORTS | |
dc.subject | TRADE DATA | |
dc.subject | TRADE LIBERALIZATION | |
dc.subject | TRADE PERFORMANCE | |
dc.subject | TRADING | |
dc.subject | UNCERTAINTY | |
dc.subject | VARIABLE COSTS | |
dc.subject | VOLATILE EXCHANGE RATES | |
dc.subject | VOLATILITY | |
dc.subject | WEIGHTS | |
dc.subject | WORLD DEVELOPMENT INDICATORS | |
dc.title | Exchange Rate Volatility, Financial Constraints, and Trade : Empirical Evidence from Chinese Firms | en |
dspace.entity.type | Publication | |
okr.date.disclosure | 2013-10-01 | |
okr.doctype | Publications & Research :: Policy Research Working Paper | |
okr.doctype | Publications & Research | |
okr.docurl | http://documents.worldbank.org/curated/en/2013/10/18347947/exchange-rate-volatility-financial-constraints-trade-empirical-evidence-chinese-firms | |
okr.globalpractice | Macroeconomics and Fiscal Management | |
okr.globalpractice | Finance and Markets | |
okr.globalpractice | Trade and Competitiveness | |
okr.identifier.doi | 10.1596/1813-9450-6638 | |
okr.identifier.externaldocumentum | 000158349_20131004092034 | |
okr.identifier.internaldocumentum | 18347947 | |
okr.identifier.report | WPS6638 | |
okr.language.supported | en | |
okr.pdfurl | http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/04/000158349_20131004092034/Rendered/PDF/WPS6638.pdf | en |
okr.region.administrative | East Asia and Pacific | |
okr.region.country | China | |
okr.topic | Fiscal and Monetary Policy | |
okr.topic | Finance and Financial Sector Development :: Currencies and Exchange Rates | |
okr.topic | Private Sector Development :: Emerging Markets | |
okr.topic | Finance and Financial Sector Development :: Debt Markets | |
okr.topic | Macroeconomics and Economic Growth :: Economic Conditions and Volatility | |
okr.unit | Partnerships, Capacity Building Unit, Development Economics Vice Presidency | |
okr.volume | 1 of 1 | |
relation.isSeriesOfPublication | 26e071dc-b0bf-409c-b982-df2970295c87 |
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