The effect of the Finnish real exchange rate on industry volumes

Show full item record



Permalink

http://hdl.handle.net/10138/17218
Title: The effect of the Finnish real exchange rate on industry volumes
Author: Kivimäki, Hannu
Contributor: University of Helsinki, Faculty of Social Sciences, Department of Economic and Political Studies
Date: 2010-06-24
Language: en
URI: http://hdl.handle.net/10138/17218
Thesis level: master's thesis
Discipline: Economics
General Economics
Kansantaloustiede
Kansantaloustieteen yleinen linja
Nationalekonomi
Allmänna linjen i nationalekonomi
Abstract: We study the effect of the Finnish real exchange rate on the output volumes of 20 manufacturing industries. Our goal is to find out how different industries react to the real exchange rate and whether there are significant differences in these reactions across industries. We use data on industry volumes for the years 1970-2008 supplied by Statistics Finland. Various regression specifications are used to test how the growth rates of industry volumes react to the real exchange rate. We find that the growth rates of manufacturing industries are usually negatively associated with the level of the real exchange. A 10% depreciation of the real exchange rate is associated with a drop of more than 2 percentage points in the growth rate of the whole manufacturing aggregate. Up to 13 industries react significantly (using the 95% confidence level) and negatively to the real exchange rate in some of our regressions. The results are robust to using different deflators in the real exchange rate, to using changes instead of levels of the real exchange rate, including lagged values of the real exchange rate and controlling for the impact of the depression of the early 1990s.
Description: Endast sammandrag. Inbundna avhandlingar kan sökas i Helka-databasen (http://www.helsinki.fi/helka). Elektroniska kopior av avhandlingar finns antingen öppet på nätet eller endast tillgängliga i bibliotekets avhandlingsterminaler.Only abstract. Paper copies of master’s theses are listed in the Helka database (http://www.helsinki.fi/helka). Electronic copies of master’s theses are either available as open access or only on thesis terminals in the Helsinki University Library.Vain tiivistelmä. Sidottujen gradujen saatavuuden voit tarkistaa Helka-tietokannasta (http://www.helsinki.fi/helka). Digitaaliset gradut voivat olla luettavissa avoimesti verkossa tai rajoitetusti kirjaston opinnäytekioskeilla.
Subject: real exchange rate
exchange rate
industry volumes
volume index of industrial output
valuuttakurssit
reaalinen valuuttakurssi
teollisuuden volyymi
teollisuuden volyymi-indeksi


Files in this item

Total number of downloads: Loading...

Files Size Format View
abstract-eng.pdf 3.562Kb PDF View/Open
abstract-fin.pdf 3.595Kb PDF View/Open

This item appears in the following Collection(s)

Show full item record