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Trade flows and exchange rates : importers, exporters and products / by Michael B. Devereux, Wei Dong and Ben Tomlin.FB3-5/2019-41E-PDF

"Using highly disaggregated transaction-level trade data, we document the importance of new firm-level trade partner relationships and the addition of new products to existing relationships in driving long-run import flows. Moreover, we find that these margins are sensitive to movements in the exchange rate. We rationalize these findings in a model of international trade with endogenous matching between heterogenous importers and exporters. Simulations of the model highlight a new channel through which exchange rate movements can affect trade—through the short-run formation of new trade relationships and the range of products traded within relationships—which can impact long-run flows"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.880113&sl=0

Publication information
Department/Agency
  • Bank of Canada.
TitleTrade flows and exchange rates : importers, exporters and products / by Michael B. Devereux, Wei Dong and Ben Tomlin.
Series title
  • Bank of Canada staff working paper, 1701-9397 ; 2019-41
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "October 2019."
  • Includes bibliographical references (pages 35-37).
  • Includes abstracts in English and French.
Publishing information
  • Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2019.
  • ©2019
Author / Contributor
  • Devereux, Michael P., author.
  • Tomlin, Ben, author.
  • Dong, Wei, author.
Description1 online resource (iii, 37 pages) : illustrations (chiefly colour).
Catalogue number
  • FB3-5/2019-41E-PDF
Subject terms
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