Exchange rates, production, firm dynamics and productivity
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The Swedish Krona is getting increasingly much attention from economists and in the media. The Riksbank is monitoring its development closely and is prepared to act if it appreciates to a level which is too high. The purpose of this thesis is to investigate how the value of the Krona affects Swedish producers of goods. A static model is set up and shows that the effects depend on several factors. Most important seem to be the degree of international competition and how much materials and capital that is imported. A partial adjustment process is assumed to capture that labor and capital do not immediately adjust to optimal levels. Empirical results indicate that the exchange rate's effects differ substantially between industries. There exist considerable difficulties in measuring the effects empirically. One of the more robust results is that capital stocks seem to be positively affected by an appreciation.
Place, publisher, year, edition, pages
Capital stocks, competitiveness, exchange rates, exports, productivity
IdentifiersURN: urn:nbn:se:uu:diva-255350OAI: oai:DiVA.org:uu-255350DiVA: diva2:821939
Gottfries, Nils, Professor
Bengtsson, Niklas, Biträdande universitetslektor