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The response of industry employment to exchange rate shocks: evidence from panel cointegration

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  • Abdulnasser Hatemi-J
  • Manuchehr Irandoust

Abstract

This study investigates the long-run relationship between employment and exchange rate shocks at the industry level for France. Using panel unit roots and panel cointegration analysis, it is found that the French industries are quite sensitive to exchange rate changes. The estimated long-run elasticities reveal that exchange rates do influence industry employment in the expected way, that is, real appreciations are associated with decline in manufacturing for all industries in the sample.

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  • Abdulnasser Hatemi-J & Manuchehr Irandoust, 2006. "The response of industry employment to exchange rate shocks: evidence from panel cointegration," Applied Economics, Taylor & Francis Journals, vol. 38(4), pages 415-421.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:4:p:415-421
    DOI: 10.1080/00036840500392243
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