How Do Exchange Rate Movements Impact Firm Performance in Korea?
Kim, Hyo Sang | January 2018
The exchange rate is one of the most influential variables on economic activities in a small open economy such as Korea. In an economy that highly depends on the external sector, exchange rate movements can affect exports and imports and ultimately lead changes in economic growth and national income. Also, they have a significant effect on the price level, which might impact the competitiveness of enterprises and employment decisions. Thus, policymakers keep their eyes on movements in the exchange rate and worry that appreciation of the exchange rate may have a negative impact on exports. In Yoon and Kim (2017), we investigate the effects of exchange rate changes not only on aggregate macro-level analysis but also extended on an industry- and firm level analysis, which can provide richer implications as there are heterogeneous characteristics of industries and firms, such as export and import share.
CitationKim, Hyo Sang. 2018. How Do Exchange Rate Movements Impact Firm Performance in Korea?. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/7930.
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