Exchange Rate Volatility, Financial Constraints and Trade: Empirical Evidence from Chinese Firms
type: Dataset
description: This paper studies how firm-level export performance is affected by Real Exchange Rate (RER) volatility and investigates whether this effect depends on existing financial constraints. Our empirical analysis relies on export data for more than 100,000 Chinese exporters over the 2000-2006 period. We confirm a trade-deterring effect of RER volatility. We find that the value exported by firms, as well as their probability of entering new export markets, decrease for destinations with a higher exchange rate volatility and that this effect is magnified for financially vulnerable firms. As expected, financial development seems to dampen this negative impact, especially on the intensive margin of export. These results provide micro-founded evidence that financial constraints may play a key role in determining the macro impact of RER volatility on real outcomes.
landing page: https://shs.hal.science/halshs-00960664
keyword: exchange-rate-volatility
keyword: exports
keyword: financial-development
keyword: infoeu-reposemanticspreprint
keyword: jel-f---international-economicsff1---tradeff1f14---empirical-studies-of-trade
keyword: preprints-working-papers-
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
issued: 2026-05-06T00:17:58.716720
modified: 2026-05-06T00:17:58.716725
language: en
contact point: Organization
  fn: CCSD

test_moissonnage_selune
type: Agent

Exchange Rate Volatility, Financial Constraints and Trade: Empirical Evidence from Chinese Firms
type: Distribution
format: HTML
access URL: https://shs.hal.science/halshs-00960664
issued: 2026-05-06T00:17:58.721593
modified: 2026-05-06T00:17:58.702012