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- Title
Exchange Rate Devaluation and Reshuffling of Global Jobs.
- Authors
Macedoni, Luca; Sdogati, Fabio
- Abstract
Current debates presume that devaluation of one country's currency may transfer the production of imported intermediate goods to the devaluating country. This paper argues that in a global production network involving more than two countries in the production of fragments, this presumption may not hold. With a simple Ricardian model of fragmentation, this paper shows that the production of fragments can be transferred only if countries have close comparative advantage. Using data from the World Input Output Database, our model is found to be empirically supported.JEL Classifications: F10
- Subjects
FOREIGN exchange rates; DEVALUATION of currency; OCCUPATIONS; PRODUCTION (Economic theory); INTERMEDIATE goods; DATA analysis; RICARDIAN Model of International Trade
- Publication
Journal of Economic Integration, 2013, Vol 28, Issue 2, p241
- ISSN
1225-651X
- Publication type
Article
- DOI
10.11130/jei.2013.28.2.241