Uncertainty, Flexible Exchange Rates, and Agglomeration:
This paper shows that exchange rate variability promotes agglomeration of economic activity. Under flexible rates, firms located in large markets have lower variability of sales, reinforcing concentration of firms there. Empirical evidence on OECD countries demonstrates (1) that the negative effect...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1998
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Schriftenreihe: | IMF Working Papers
Working Paper No. 98/9 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper shows that exchange rate variability promotes agglomeration of economic activity. Under flexible rates, firms located in large markets have lower variability of sales, reinforcing concentration of firms there. Empirical evidence on OECD countries demonstrates (1) that the negative effect of country size on variability of industrial production is stronger after the 1973 collapse of fixed rates and (2) for small (large) countries, exchange rates variability has a long-run negative (positive) effect on net inward FDI flows. Two implications arise: creating a currency area fosters agglomeration in the area, and a two-stage EMU may exacerbate the current uneven regional development |
Beschreibung: | 1 Online-Ressource (34 p) |
ISBN: | 1451927355 9781451927351 |
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spelling | Ricci, Luca Antonio Verfasser aut Uncertainty, Flexible Exchange Rates, and Agglomeration Ricci, Luca Antonio Washington, D.C International Monetary Fund 1998 1 Online-Ressource (34 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 98/9 This paper shows that exchange rate variability promotes agglomeration of economic activity. Under flexible rates, firms located in large markets have lower variability of sales, reinforcing concentration of firms there. Empirical evidence on OECD countries demonstrates (1) that the negative effect of country size on variability of industrial production is stronger after the 1973 collapse of fixed rates and (2) for small (large) countries, exchange rates variability has a long-run negative (positive) effect on net inward FDI flows. Two implications arise: creating a currency area fosters agglomeration in the area, and a two-stage EMU may exacerbate the current uneven regional development Online-Ausg http://elibrary.imf.org/view/IMF001/07642-9781451927351/07642-9781451927351/07642-9781451927351.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Ricci, Luca Antonio Uncertainty, Flexible Exchange Rates, and Agglomeration |
title | Uncertainty, Flexible Exchange Rates, and Agglomeration |
title_auth | Uncertainty, Flexible Exchange Rates, and Agglomeration |
title_exact_search | Uncertainty, Flexible Exchange Rates, and Agglomeration |
title_exact_search_txtP | Uncertainty, Flexible Exchange Rates, and Agglomeration |
title_full | Uncertainty, Flexible Exchange Rates, and Agglomeration Ricci, Luca Antonio |
title_fullStr | Uncertainty, Flexible Exchange Rates, and Agglomeration Ricci, Luca Antonio |
title_full_unstemmed | Uncertainty, Flexible Exchange Rates, and Agglomeration Ricci, Luca Antonio |
title_short | Uncertainty, Flexible Exchange Rates, and Agglomeration |
title_sort | uncertainty flexible exchange rates and agglomeration |
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