The Impact of the Exchange Rate on Local Industry
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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Volume (Year): 51 (1998)
Issue (Month): 1 ()
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