Financial frictions and exports dynamics in large devaluations

We study the role of nancial frictions and balance-sheet e ects in accounting for the dy- namics of aggregate exports in large devaluations. In standard models of international trade, exports increase immediately following a large devaluation; in contrast, aggregate exports re- spond sluggishly in t...

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Detalles Bibliográficos
Autores principales: Kohn, David, Szkup, Michal, Liebovici, Fernando
Otros Autores: Universidad Torcuato Di Tella
Formato: Tesis de maestría acceptedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella 2017
Materias:
Devaluación
Crisis
Tesis
Acceso en línea:http://repositorio.utdt.edu/handle/utdt/2010
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R16320.500.13098-2010
record_format dspace
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Devaluación
Crisis
Tesis
spellingShingle Devaluación
Crisis
Tesis
Kohn, David
Szkup, Michal
Liebovici, Fernando
Financial frictions and exports dynamics in large devaluations
description We study the role of nancial frictions and balance-sheet e ects in accounting for the dy- namics of aggregate exports in large devaluations. In standard models of international trade, exports increase immediately following a large devaluation; in contrast, aggregate exports re- spond sluggishly in the data. We investigate a small open economy with heterogeneous rms and idiosyncratic productivity shocks, where rms face nancing constraints and debt can be denominated in domestic or foreign units. In our model, a real depreciation a ects rms through two channels. On the one hand, it increases the returns to selling internationally, making exporting more pro table. On the other hand, it tightens the borrowing constraint by increasing the value of foreign debt relative to rms' net worth. We calibrate the model to match key features from plant-level data and use it to quantify the importance of these channels. We nd that nancial frictions slow down the response of aggregate exports, and foreign-denominated debt ampli es this efect by decreasing rms' net worth on impact. When accounting for the observed heterogeneity in export intensity across exporters, these channels explain a large share of the gap between the data and the frictionless model.
author2 Universidad Torcuato Di Tella
author_facet Universidad Torcuato Di Tella
Kohn, David
Szkup, Michal
Liebovici, Fernando
format Tesis de maestría
acceptedVersion
author Kohn, David
Szkup, Michal
Liebovici, Fernando
author_sort Kohn, David
title Financial frictions and exports dynamics in large devaluations
title_short Financial frictions and exports dynamics in large devaluations
title_full Financial frictions and exports dynamics in large devaluations
title_fullStr Financial frictions and exports dynamics in large devaluations
title_full_unstemmed Financial frictions and exports dynamics in large devaluations
title_sort financial frictions and exports dynamics in large devaluations
publisher Universidad Torcuato Di Tella
publishDate 2017
url http://repositorio.utdt.edu/handle/utdt/2010
work_keys_str_mv AT kohndavid financialfrictionsandexportsdynamicsinlargedevaluations
AT szkupmichal financialfrictionsandexportsdynamicsinlargedevaluations
AT liebovicifernando financialfrictionsandexportsdynamicsinlargedevaluations
bdutipo_str Repositorios
_version_ 1764820542841421829

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