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Changements importants dans les mouvements du taux de change réel, dynamique de la firme, et croissance de la productivité.
Author(s) -
Fung Loretta
Publication year - 2008
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1365-2966.2008.00468.x
Subject(s) - productivity , exchange rate , currency , economics , scale (ratio) , monetary economics , production (economics) , industrial organization , business , labour economics , macroeconomics , physics , quantum mechanics
. This paper examines the influence of large real exchange rate movements on firm turnover and production scale, and the contribution of these decisions to productivity growth. Our theoretical model predicts that home currency appreciations cause firm closure and reduce surviving firms' exports while boosting domestic sales. The net effect on sales and productivity therefore depends on changes in domestic sales and exports. Taiwanese firm‐level data are used to test these predictions. The results show that real currency appreciations lead to scale expansion of surviving firms which in turn raises productivity. Our findings suggest the existence of a significant scale effect.