Exchange rates, invoicing currencies and the margins of exports

B-Tier
Journal: Journal of International Money and Finance
Year: 2024
Volume: 141
Issue: C

Authors (2)

Lee, Kwan Yong (not in RePEc) Naknoi, Kanda (University of Connecticut)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine effects of currency depreciation on South Korean exporting firms, taking into account invoicing currencies in international trade. Such effects on real exports (intensive margin) and the probability of exporting (extensive margin) are decomposed into invoice-currency adjusted improved price competitiveness, increased costs of imported inputs, and increased burden of foreign-currency debts. We find strong evidence that currency depreciation affects both margins through price competitiveness, and invoice currencies play an important role in explaining such effects. However, evidence for impacts of currency depreciation via the costs of imported inputs and the burden of foreign-currency debt channel is weak.

Technical Details

RePEc Handle
repec:eee:jimfin:v:141:y:2024:i:c:s0261560624000032
Journal Field
International
Author Count
2
Added to Database
2026-01-26