How do different exporters react to exchange rate changes? Theory, empirics and aggregate implications

pervasive in sectors and destination countries with higher distribution costs. Consistent with our theoretical framework, we show that the probability of firms to enter the export market following a depreciation increases. The extensive margin response to exchange rate changes is modest at the aggregate level because firms that enter, following a depreciation, are smaller relative to existing firms.

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Year of publication:	2010
Authors:	Mayer, Thierry ; Martin, Philippe ; Berman, Nicolas
Institutions:	Society for Economic Dynamics - SED

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Series:	2010 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2010 SED Meeting Papers Number 1338
Source:	RePEc - Research Papers in Economics

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