Listing 1 - 10 of 61 | << page >> |
Sort by
|
Choose an application
Choose an application
Choose an application
Choose an application
Choose an application
A long empirical literature has examined the idea that, in the absence of hedging mechanisms, currency risk should have an adverse effect on the export volumes of risk averse exporters. But there are no clear conclusions from this literature, and the current consensus seems to be that there is at most a weak negative effect of exchange rate volatility on aggregate trade flows. However, most of this literature examines the impact of exchange rate volatility on aggregate trade flows, implicitly assuming a uniform impact of this volatility on exporters across sectors. This paper explots the fact that, if exchange rate volatility is detrimental for trade, firms exporting goods that offer a natural hedge against exchange rate fluctuations-i.e. those whose international price is negatively correlated with the nominal exchange rate of the country where they operate-should be relatively benefited in environments of high exchange rate volatility, and capture a larger share of the country's export basket. This hypothesis is tested using detailed data on the composition of trade of 132 countries at 4-digit SITC level. The results show that the commodities that offer natural hedge capture a larger share of a country's export basket when the exchange rate is volatile, but there is only weak evidence that the availability of financial derivatives to hedge currency risk reduces the importance of a sector's natural hedge.
Commodities --- Currencies and Exchange Rates --- Debt Markets --- Economic Growth --- Economic Stabilization --- Economic Theory & Research --- Emerging Markets --- Exchange Control --- Export Markets --- Exporters --- International Economics & Trade
Choose an application
This paper provides evidence of the presence and relevance of a credit-chain amplification mechanism by looking at its implications for the correlation of industries. In particular, it tests the hypothesis that an increase in the use of trade-credit along the input-output chain linking two industries results in an increase in their correlation. The analysis uses detailed data on the correlations and input-output relations of 378 manufacturing industry-pairs across 44 countries with different degrees of use of trade credit. The results provide strong support for this hypothesis and indicate that the mechanism is quantitatively relevant.
Access to Finance --- Adverse effect --- Bankruptcy --- Bankruptcy and Resolution of Financial Distress --- Business cycles --- Central Bank --- Debt --- Debt Markets --- Economic Theory and Research --- Finance and Financial Sector Development --- Interest rate --- Investment and Investment Climate --- Liquidity --- Macroeconomics --- Macroeconomics and Economic Growth --- Risk neutral --- Value added
Choose an application
The process of global climate change has been associated with an increase in the frequency of climatic disasters. Yet, there is still little systematic evidence on the macroeconomic costs of these episodes. This paper uses panel time-series techniques to estimate the short and long-run impact of climatic and other disasters on a country's GDP. The results indicate that a climate related disaster reduces real GDP per capita by at least 0.6 percent. Therefore, the increased incidence of these disasters during recent decades entails important macroeconomic costs. Among climatic disasters, droughts have the largest average impact, with cumulative losses of 1 percent of GDP per capita. Across groups of countries, small states are more vulnerable than other countries to windstorms, but exhibit a similar response to other types of disasters; and low-income countries responds more strongly to climatic disasters, mainly because of their higher response to droughts. However, a country's level of external debt has no relation to the output impact of any type of disaster. The evidence also indicates that, historically, aid flows have done little to attenuate the output consequences of climatic disasters.
Accidents --- Climate change --- Conflict and Development --- Disaster --- Disaster community --- Disaster Management --- Disaster prevention --- Drought --- Droughts --- Earthquakes --- Environment --- Famines --- Floods --- Hurricane --- Hurricanes --- Natural catastrophes --- Natural Disaster --- Natural Disasters --- Reconstruction --- Tidal waves --- Volcano --- Wind storm --- Wind storms
Choose an application
This paper provides evidence of the presence and relevance of a credit-chain amplification mechanism by looking at its implications for the correlation of industries. In particular, it tests the hypothesis that an increase in the use of trade-credit along the input-output chain linking two industries results in an increase in their correlation. The analysis uses detailed data on the correlations and input-output relations of 378 manufacturing industry-pairs across 44 countries with different degrees of use of trade credit. The results provide strong support for this hypothesis and indicate that the mechanism is quantitatively relevant.
Access to Finance --- Adverse effect --- Bankruptcy --- Bankruptcy and Resolution of Financial Distress --- Business cycles --- Central Bank --- Debt --- Debt Markets --- Economic Theory and Research --- Finance and Financial Sector Development --- Interest rate --- Investment and Investment Climate --- Liquidity --- Macroeconomics --- Macroeconomics and Economic Growth --- Risk neutral --- Value added
Choose an application
A long empirical literature has examined the idea that, in the absence of hedging mechanisms, currency risk should have an adverse effect on the export volumes of risk averse exporters. But there are no clear conclusions from this literature, and the current consensus seems to be that there is at most a weak negative effect of exchange rate volatility on aggregate trade flows. However, most of this literature examines the impact of exchange rate volatility on aggregate trade flows, implicitly assuming a uniform impact of this volatility on exporters across sectors. This paper explots the fact that, if exchange rate volatility is detrimental for trade, firms exporting goods that offer a natural hedge against exchange rate fluctuations-i.e. those whose international price is negatively correlated with the nominal exchange rate of the country where they operate-should be relatively benefited in environments of high exchange rate volatility, and capture a larger share of the country's export basket. This hypothesis is tested using detailed data on the composition of trade of 132 countries at 4-digit SITC level. The results show that the commodities that offer natural hedge capture a larger share of a country's export basket when the exchange rate is volatile, but there is only weak evidence that the availability of financial derivatives to hedge currency risk reduces the importance of a sector's natural hedge.
Commodities --- Currencies and Exchange Rates --- Debt Markets --- Economic Growth --- Economic Stabilization --- Economic Theory & Research --- Emerging Markets --- Exchange Control --- Export Markets --- Exporters --- International Economics & Trade
Choose an application
This paper provides systematic evidence of the role of banks' reliance on wholesale funding in the international transmission of the ongoing financial crisis. It conducts an event study to estimate the impact of the liquidity crunch of September 15, 2008, on the stock price returns of 662 individual banks across 44 countries, and tests whether differences in the abnormal returns observed around those events relate to these banks' ex-ante reliance on wholesale funding. Globally and within countries, banks that relied more heavily in non-deposit sources of funds experienced a significantly larger decline in stock returns even after controlling for other mechanisms. Within a country, the abnormal returns of banks with high wholesale dependence fell about 2 percent more than those of banks with low dependence during the three days following Lehman Brothers' bankruptcy. This large differential return suggests that liquidity played an important role in the transmission of the crisis.
Access to Finance --- Bank --- Bank run --- Banking system --- Bankruptcy --- Banks --- Banks & Banking Reform --- Debt --- Debt Markets --- Demand deposits --- Deposits --- Emerging Markets --- Finance --- Finance and Financial Sector Development --- Financial crises --- Financial institutions --- Financial Intermediation --- Governments --- Guarantees --- Housing --- Insurance --- Investment banking --- Investment banks --- Loans --- Macroeconomics --- Markets --- Private Sector Development
Listing 1 - 10 of 61 | << page >> |
Sort by
|