Economics, Econometrics and Finance
4 years ago

Currency depreciation increases borrowing costs, hampers exports for importing firms.

1 view
RePEc: Research Papers in Economics
Exchange Rates, Borrowing Costs and Exports: Firm-Level Evidence
Kwan Yong Lee, Kanda Naknoi

Paper Summary

Currency depreciation increases borrowing costs for firms importing materials, leading to higher expenses. This can reduce exports, despite making prices more competitive. Financial crises can amplify these effects, making exports contract.

Related papers

Economics, Econometrics and Finance
4 years ago

Financially constrained firms benefit more from exchange rate fluctuations in exports.

Trade Impact
International Finance
International Strategy
1 view
Economics, Econometrics and Finance
4 years ago

Financial constraints drive export dynamics in large devaluations, reshaping global markets.

International Finance
Trade Impact
Macroeconomic Analysis
1 view
Economics, Econometrics and Finance
4 years ago

Credit crunches reduce exports, hurting firms and stifling market growth.

Trade Impact
International Finance
International Strategy
1 view