Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Essays in International trade, exchange rates and prices
Stockholm University, Faculty of Social Sciences, Department of Economics.
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of three self-contained essays in International Trade, Exchange Rates and Prices. Although independent, these essays share some common themes. The first two papers can be related to the vast literature on exchange rate pass-through to prices. While the first paper uses firm-product level data from Sweden to study firms’ export price response to movements in exchange rate, the second paper employs aggregate level data from Ethiopia and looks at the issue from the importers’ perspective. The third paper, like the first paper, uses Swedish firm-level data and investigates firms’ exporting behavior. The third paper, however, specifically focuses on export margins of multi-product firms and studies their response when exporting to destinations of different size and distance from the home country.

Place, publisher, year, edition, pages
Stockholm: Department of Economics, Stockholm University , 2017. , p. 17
Series
Dissertations in Economics, ISSN 1404-3491 ; 2017:1
Keywords [en]
Heterogeneous Firms, Multi-product firms, Exports, Market size, Distance, Exchange rates, Exchange Rate Pass-through, Inflation, SVAR, Sweden, Ethiopia
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-137002ISBN: 978-91-7649-608-4 (print)ISBN: 978-91-7649-609-1 (print)OAI: oai:DiVA.org:su-137002DiVA, id: diva2:1062914
Public defence
2017-02-14, Nordenskiöldsalen, Geovetenskapens hus, Svante Arrhenius väg 12, Stockholm, 13:00 (English)
Opponent
Supervisors
Note

At the time of the doctoral defense, the following papers were unpublished and had a status as follows: Paper 1: Manuscript. Paper 2: Manuscript. Paper 3: Manuscript.

Available from: 2017-01-20 Created: 2016-12-20 Last updated: 2017-01-27Bibliographically approved
List of papers
1. Exporters’ Reactions to Movements in Exchange Rates: Firm-level Evidence
Open this publication in new window or tab >>Exporters’ Reactions to Movements in Exchange Rates: Firm-level Evidence
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper analyzes the potential reactions of exporting firms to movements in exchange rates using detailed firm-product level panel data from Sweden covering the period 1997 to 2007. This is done focusing on firms’ decisions regarding export price and quantity as well as entry and exit decisions at the firm and product levels. Moreover, an attempt is made to explain the (incomplete) pass-through of exchange rate changes into import prices using the roles of firm heterogeneities as well as product- and country-level characteristics. The results indicate that Swedish exporters practice a pricing to market strategy, the implied exchange rate pass-through (ERPT) to the local currency price of imports being 84-85 percent. Using non-parametric techniques as well as product-level efficiency measures, the paper finds evidence to support theoretical predictions that the rate of ERPT is declining with increases in productivity/efficiency. Moreover, the paper also shows that firms’ tendency to increase their export price in response to a depreciation of the firm-specific exchange rate increases with their reliance on imports of intermediate inputs. Finally, the results in this paper show the significant role of movements in exchange rates in firms’ extensive margin decisions.

Keywords
Exchange Rates, Exports, Exchange Rate Pass-through
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:su:diva-136991 (URN)
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2017-01-09
2. A Closer look at Exchange Rate Induced Inflation in Ethiopia
Open this publication in new window or tab >>A Closer look at Exchange Rate Induced Inflation in Ethiopia
(English)Manuscript (preprint) (Other academic)
Abstract [en]

In this paper, we examine the rate of exchange rate pass-through (ERPT) to domestic prices with a particular focus on the Ethiopian economy. We have employed a Structural Vector Autoregressive (SVAR) model where identification is achieved based on a combination of short- and long-run restrictions. The long-run identifying restrictions are derived from a simple small open economy macro model. The results from the impulse response analysis point to a pass-through rate that starts out small but steadily increases in subsequent quarters, becoming close to complete in about two years. According to the variance decomposition results, however, other macroeconomic shocks, including shocks to aggregate demand, output supply as well as shocks to foreign financial flows and trade balance appear to play an important role in explaining the variation in inflation in Ethiopia.

Keywords
Exchange Rate, Pass-through, Inflation, SVAR, Ethiopia
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:su:diva-136997 (URN)
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2017-01-09
3. Market Size, Distance and Export Margins of Multi-product Firms
Open this publication in new window or tab >>Market Size, Distance and Export Margins of Multi-product Firms
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper presents consistent empirical findings on impacts of the distance to and the market size of destination markets on the export margins of multi-product firms using detailed firm-level data from Sweden. A decomposition of the respective positive and negative impacts of market size and distance on aggregate exports reveals the dominant impact of the extensive margin. The paper presents evidence consistent with the economies of scope idea emphasized in Arkolakis et al. (2014) as well as on the importance of the composition of firms exporting to destinations of different size and distance from the home country as in Bernard et al. (2011). Unlike similar papers in the area, this paper uses firm-destination level data. In this case, the intra-firm intensive margin impact of both market size and distance appears to dominate. Moreover, the paper presents evidence that supports the prediction by Chaney (2008) and Krugman (1980) that the elasticity of substitution magnifies the impact of trade barriers on the intensive margin. Finally, the paper shows that firms exporting to larger and/or less remote destinations tend to skew their export sales towards their better performing products as predicted in Mayer et al. (2014).

Keywords
Heterogeneous Firms, Multi-product firms, Market size, Distance, Sweden
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:su:diva-136998 (URN)
Available from: 2016-12-20 Created: 2016-12-20 Last updated: 2017-01-09

Open Access in DiVA

Essays in International trade, exchange rates and prices(168 kB)125 downloads
File information
File name FULLTEXT01.pdfFile size 168 kBChecksum SHA-512
c71f2caf7ec34f6547daacf274a0faee5f78ff982b64a9c8b3f544022dbe4584b52c7405cda5813c528aa6d1072a950498fa85b9222cd9aaafcd173cb18d5cb4
Type fulltextMimetype application/pdf

Search in DiVA

By author/editor
Molla, Kiflu Gedefe
By organisation
Department of Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 125 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

isbn
urn-nbn

Altmetric score

isbn
urn-nbn
Total: 491 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf