Financial Market Imperfections and the impact of exchange rate movements on exports

This paper studies the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we show that the impact of a depreciation will be less positive - or even negative - for a country as: (i) firms borrow in foreign currency ; (ii) they are credit constrained ; (iii) they are specialized in industries that require more external capital; (iv) the depreciation's or devaluation's magnitude is large. This last result confirms the existence of a non-linear relationship between an exchange rate depreciation and a country's exports reaction when financial imperfections are observed. This work offers a new explanation for the consequences of recent currency crises in middle income countries.International Trade,Exchange Rate Movements,Financial Development,Financial Market Imperfections

Financial market imperfections and the impact of exchange rate movements

This paper analyses empirically the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we find that the impact of a depreciation on exports will be less positive - or even negative - for a country if : (i) firms borrow in foreign currency ; (ii) they are credit constrained ; (iii) they are specialized in industries that require more external capital ; (iv) the magnitude of depreciation or devaluation is large. This last result emphasizes the existence of a non-linear relationship between an exchange rate depreciation and the reaction of a country's exports when financial imperfections are observed. This offers a new explanation for the consequences of recent currency crises in middle income countries.International trade, exchange rate movements, balance-sheets effects, financial market imperfections.

Antoine Berman : el albergue de lo lejano

N. de la T. El ensayo de Antoine Berman que ofrecemos aquí en castellano es la introducción de su obra La Traduction et la lettre ou l'Auberge du lointain (1985). Al igual que el resto de los ensayos que componen dicha obra -y como lo indica el propio Berman al principio-, este texto es fruto del seminario sobre la traducción que había impartido un año antes en el Collège International de Philosophie de París. Habríamos podido dejar sin traducir el título L'Auberge du lointain, dejando así viva y activa la referencia al trovador Jaufré Rudel, que acuñó esta expresión para referirse a la lejanía de los amados. Hemos optado por una traducción que preserva la letra y pone de manifiesto nuestra adhesión a la ética bermaniana. Las notas precedidas por N. de la T., aunque no siempre se refieren a la traducción, son de la traductora. El resto de notas ya figuraban en el texto original y son de Antoine Berman

Export dynamics and sales at home

How do firms' sales interact across markets? Are foreign and domestic sales complements or substitutes? Using a large French firm-level database that combine balance-sheet and product-destination-specific export information over the period 1995-2001, we study the interconnections between exports and domestic sales. We identify exogenous shocks that affect firm demand on foreign markets to instrument yearly variations in exports. Our results show that exogenous variations in foreign sales are positively associated with domestic sales, even after controlling for changes in domestic demand. A 10% exogenous increase in exports generates a 1.5 to 3% increase in domestic sales in the short-term. This result is robust to various estimation techniques, instruments, controls, and sub-samples. It is also supported by the natural experiment of the Asian crisis in the late 1990's. We discuss various channels that may explain this complementarity.Export dynamics, domestic sales, liquidity

Financial market imperfections and the impact of exchange rate movements

URL des Cahiers : https://halshs.archives-ouvertes.fr/CAHIERS-MSECahiers de la Maison des Sciences Economiques 2006.55 - ISSN 1624-0340This paper analyses empirically the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we find that the impact of a depreciation on exports will be less positive - or even negative - for a country if: (i) firms borrow in foreign currency; (ii) they are credit constrained; (iii) they are specialized in industries that require more external capital; (iv) the magnitude of depreciation or devaluation is large. This last result emphasizes the existence of a non-linear relationship between an exchange rate depreciation and the reaction of a country's exports when financial imperfections are observed. This offers a new explanation for the consequences of recent currency crises in middle income countries.Cet article s'intéresse à la manière dont les imperfections de marché financier peuvent modifier la réaction des exporatations d'un pays lors d'une dépréciation du taux de change. Nous montrons, à l'aide de données trimestrielles pour 27 pays durant la période 1990-2005, que la réaction du volume d'exportation consécutive à une dépréciation sera d'autant moins positive que (i) les firmes domestiques empruntent en monnaie étrangère, (ii) il existe des contraintes de crédit, (iii) les exportateurs sont spécialisés dans des productions nécessitant l'utilisation de davantage de capital externe, (iv) l'ampleur de la dépréciation est importante. Ce dernier élément nous permet de confirmer l'existence d'une relation non linéaire entre dépréciation de la monnaie domestique et réaction des exportations, compte tenu des imperfections de marché financier. Ce travail propose en particulier une nouvelle approche permettant de mieux comprendre la faible réaction des exportations dans les économies émergentes

Export dynamics and sales at home

How do rms' sales interact across markets? Are foreign and domestic sales complements or substitutes? Using a large French rm-level database that combine balance-sheet and product-destination-speci c export information over the period 1995-2001, we study the interconnections between exports and domestic sales. We identify exogenous shocks that a ect rm demand on foreign markets to instrument yearly variations in exports. Our results show that exogenous variations in foreign sales are positively associated with domestic sales, even after controlling for changes in domestic demand. A 10% exogenous increase in exports generates a 1.5 to 3% increase in domestic sales in the short-term. This result is robust to various esti-mation techniques, instruments, controls, and sub-samples. It is also supported by the natural experiment of the Asian crisis in the late 1990's. We discuss various channels that may explain this complementarity

A Tradução e a Letra ou o Albergue do Longínquo

Edição: 2.ª ed. Editoria: Tubarão: Copiart; Florianópolis: PGET/UFSC, 2013. Páginas: 200 p. Língua da publicação: Português Título original: La traduction et la lettre ou l’auberge du lointain Tradução: Marie-Hélène Catherine Torres, Mauri Furlan & Andréia Guerini Língua do original: Francês e grego Referência ABNT: Berman, Antoine. A Tradução e a Letra ou o Albergue do Longínquo. 2.ª ed. Tubarão: Copiart; Florianópolis: PGET/UFSC, 2013. 200 p. (La traduction et la lettre ou l’auberge du lointain [Francês e grego]). Tradução de: Marie-Hélène Catherine Torres, Mauri Furlan & Andréia Guerini

A tarefa da poesia é simplesmente

(A tarefa da poesia é simplesmente: dizer as coisas na sua visibilidade, fazê-las entrar, desde que visíveis, no poema, no espaço do poema). Artigo publicado, originalmente, pela revista La Délirante (Paris, França), nº1, em julho de 1967