Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data

Fauceglia, Dario

doi:10.1111/twec.12852

Publication type:	Article in scientific journal
Type of review:	Peer review (publication)
Title:	Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data
Authors:	Fauceglia, Dario
et. al:	No
DOI:	10.1111/twec.12852
Published in:	The World Economy
Volume(Issue):	2020
Issue:	43
Page(s):	1592
Pages to:	1618
Issue Date:	14-Aug-2019
Publisher / Ed. Institution:	Wiley
ISSN:	0378-5920 1467-9701
Language:	English
Subjects:	Aggregate export; Exchange rate; Quality
Subject (DDC):	338: Production
Abstract:	This paper studies the relationship between exchange rate movements and the average export quality using disaggregated Swiss product-level data between 1996 and 2015. We find evidence at different levels of aggregation that the average export quality increases in response to a currency appreciation through compositional effects: currency appreciations shift market shares towards goods that are more expensive and of higher quality. This exchange rate effect on quality is more pronounced for differentiated goods and in sectors with a greater scope for quality differentiation. From a policy perspective, this reallocation effect points to the importance of facilitating structural changes in the export composition to increase the resilience of the export sector to exchange rate shocks. Our results also suggest a positive relationship between the average export quality and aggregate export sales. From a methodological point of view, the findings imply that exchange rate pass-through estimations without quality controls tend to be biased regardless of aggregation level or type of data.
URI:	https://www.seco.admin.ch/seco/de/home/Publikationen_Dienstleistungen/Publikationen_und_Formulare/Strukturwandel_Wachstum/Strukturwandel/exchange-rate-fluctuations-and-quality-composition.html https://digitalcollection.zhaw.ch/handle/11475/19341
Fulltext version:	Published version
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Center for Labor, Digital and Regional Economics (CLDR)
Appears in collections:	Publikationen School of Management and Law

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Fauceglia, D. (2019). Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data. The World Economy, 2020(43), 1592–1618. https://doi.org/10.1111/twec.12852

Fauceglia, D. (2019) ‘Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data’, The World Economy, 2020(43), pp. 1592–1618. Available at: https://doi.org/10.1111/twec.12852.

D. Fauceglia, “Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data,” The World Economy, vol. 2020, no. 43, pp. 1592–1618, Aug. 2019, doi: 10.1111/twec.12852.

FAUCEGLIA, Dario, 2019. Exchange rate fluctuations and quality composition of exports : evidence from Swiss product‐level data. The World Economy [online]. 14 August 2019. Bd. 2020, Nr. 43, S. 1592–1618. DOI 10.1111/twec.12852. Verfügbar unter: https://www.seco.admin.ch/seco/de/home/Publikationen_Dienstleistungen/Publikationen_und_Formulare/Strukturwandel_Wachstum/Strukturwandel/exchange-rate-fluctuations-and-quality-composition.html

Fauceglia, Dario. 2019. “Exchange Rate Fluctuations and Quality Composition of Exports : Evidence from Swiss Product‐Level Data.” The World Economy 2020 (43): 1592–1618. https://doi.org/10.1111/twec.12852.

Fauceglia, Dario. “Exchange Rate Fluctuations and Quality Composition of Exports : Evidence from Swiss Product‐Level Data.” The World Economy, vol. 2020, no. 43, Aug. 2019, pp. 1592–618, https://doi.org/10.1111/twec.12852.