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Exports and Exchange Rate Movements: The Role of Credit Market Imperfections

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  • n.a.m, Naseem
  • abu hassan shaari mohd, Nor
  • tamat, Sarmidi
  • noor aini, khalifah

Abstract

Focusing on a threshold regression analysis, the result provides new evidence that the negative effect of exchange rate depreciation on exports takes place as certain threshold level of credit market imperfection has been attained.

Suggested Citation

  • n.a.m, Naseem & abu hassan shaari mohd, Nor & tamat, Sarmidi & noor aini, khalifah, 2013. "Exports and Exchange Rate Movements: The Role of Credit Market Imperfections," MPRA Paper 52395, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52395
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    References listed on IDEAS

    as
    1. Aaron Tornell & Frank Westermann, 2003. "Credit Market Imperfections in Middle Income Countries," CESifo Working Paper Series 960, CESifo.
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    3. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    4. Hansen, Bruce E, 1996. "Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis," Econometrica, Econometric Society, vol. 64(2), pages 413-430, March.
    5. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.
    6. Nicolas Berman & Antoine Berthou, 2009. "Financial Market Imperfections and the Impact of Exchange Rate Movements on Exports," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 103-120, February.
    7. Minetti, Raoul & Zhu, Susan Chun, 2011. "Credit constraints and firm export: Microeconomic evidence from Italy," Journal of International Economics, Elsevier, vol. 83(2), pages 109-125, March.
    8. Rupa Duttagupta & Antonio Spilimbergo, 2004. "What Happened to Asian Exports During the Crisis?," IMF Staff Papers, Palgrave Macmillan, vol. 51(1), pages 1-4.
    9. Chor, Davin & Manova, Kalina, 2012. "Off the cliff and back? Credit conditions and international trade during the global financial crisis," Journal of International Economics, Elsevier, vol. 87(1), pages 117-133.
    10. Kin Tang & Hui Tan & Niaz Naseem, 2013. "The effect of foreign currency borrowing and financial development on exports: a dynamic panel analysis on Asia-Pacific countries," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(3), pages 460-476.
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    More about this item

    Keywords

    Exchange rate; Exports; Credit market imperfection; Threshold effects;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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