The difficulty in finding the substitution effects on exports of foreign direct investment has posed challenges to empirical analysts. In analysing newly-constructed product-level data that enable endogeneity and aggregation bias to be addressed simultaneously, this study finds that auto part...

This paper adds to the literature that suggests that exports become less sensitive to exchange rate movements under certain circumstances. Focusing on the industry-specific sensitivity of export quantities to exchange rates in the context of intra-industry trade (IIT), this paper theoretically...