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The Impact of the Exchange Rate on Local Industry

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Author Info

  • Thompson, Henry

    ()
    (Department of Agricultural Economics and Rural Sociology Auburn University)

  • Upadhyaya, Kamal P.

    ()
    (Department of Economics and Finance, University of New Haven)

Abstract

A change in the nomina1 exchange rate will have an impact on domestic industry if foreign prices do not adjust to keep the domestic price constant. Local industries for two heavily exported products, Alabama’s chemicals and primary metals, were affected by the exchange rate from 1975 to 1990. The exchange rate elasticity of demand is estimated to be 0.28 for chemicals and 0.24 for primary metals.

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Bibliographic Info

Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

Volume (Year): 51 (1998)
Issue (Month): 1 ()
Pages: 101-113

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Handle: RePEc:ris:ecoint:0317

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Cited by:
  1. Almarwani, Abdul & Jolly, Curtis M. & Thompson, Henry, 2007. "Exchange Rates and Commodity Markets: Global Exports of Corn, Cotton, Poultry, and Soybeans," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 8(1), January.
  2. Durmaz, Nazif & Thompson, Henry, 2010. "Textile Producer Cotton Imports and the Exchange Rate," MPRA Paper 21831, University Library of Munich, Germany.

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