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Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U. S.-Canada Border

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  • Jeffrey R. Campbell
  • Beverly Lapham

Abstract

This paper examines the effects of U.S.-Canadian real exchange rate movements on U.S. retail trade industries in states that border Canada. Using county level data, we focus on the effects on the number of establishments, employment, and payroll in two-digit and three-digit level retail trade industries. We expect fluctuations in the the real exchange rate to affect these variables as movements in these relative price series impact on the incidence of cross-border shopping. This, in turn, affects the demand facing retailers located in each country. Our results suggest that for many of the industries in our sample, real exchange rates have a significant effect on these variables and these effects vary across industries.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 94 (2004)
Issue (Month): 4 (September)
Pages: 1194-1206

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Handle: RePEc:aea:aecrev:v:94:y:2004:i:4:p:1194-1206

Note: DOI: 10.1257/0002828042002723
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References

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Citations

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Cited by:
  1. Mario J. Crucini & Christopher I. Telmer, 2012. "Microeconomic Sources of Real Exchange Rate Variability," NBER Working Papers 17978, National Bureau of Economic Research, Inc.
  2. Ekholm, Karolina & Moxnes, Andreas & Ulltveit-Moe, Karen Helene, 2012. "Manufacturing restructuring and the role of real exchange rate shocks," Journal of International Economics, Elsevier, vol. 86(1), pages 101-117.
  3. Boivin, Jean & Clark, Robert & Vincent, Nicolas, 2012. "Virtual borders," Journal of International Economics, Elsevier, vol. 86(2), pages 327-335.
  4. Friberg, Richard & Paterson, Robert W & Richardson, Andrew D, 2010. "Why is there a home bias? A case study of Wine," CEPR Discussion Papers 7885, C.E.P.R. Discussion Papers.
  5. Jeffrey Campbell, 2000. "Real Exchange Rate Fluctuations and the Dynamics of Retail Trade Industries on the U.S.-Canada Border," Econometric Society World Congress 2000 Contributed Papers 1224, Econometric Society.
  6. Jean Boivin & Robert Clark & Nicolas Vincent, 2010. "Virtual Borders: Online Nominal Rigidities and International Market Segmentation," NBER Working Papers 15642, National Bureau of Economic Research, Inc.
  7. Friberg, Richard & Asplund, Marcus & Wilander, Fredrik, 2005. "Demand and Distance: Evidence on Cross-Border Shopping," Working Paper Series in Economics and Finance 587, Stockholm School of Economics.
  8. Philip Sauré & Hosny Zoabi, 2009. "Effects of Trade on Female Labor Force Participation," Working Papers 2009-12, Swiss National Bank.
  9. Katherine Ho & Matthew Neidell, 2009. "Equilibrium effects of public goods: The impact of community water fluoridation on dentists," NBER Working Papers 15056, National Bureau of Economic Research, Inc.
  10. Daniel Aaronson & Eric French & James MacDonald, 2004. "The minimum wage and restaurant prices," Working Paper Series WP-04-21, Federal Reserve Bank of Chicago.

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