Labour Demand and Exchange Rate Volatility

Research, Preprint English OPEN
Broll, Udo; Hansen, Sabine;
(2004)
  • Publisher: Göttingen: University of Göttingen, Center for European, Governance and Economic Development Research (cege)
  • Subject: F41 | Realoption | F31 | F23 | Labour demand, Exchange rate risk, Risk aversion, Flexibility, Real option, International trade | Real option | F16 | Labour demand,Exchange rate risk,Risk aversion,Flexibility,Real option,International trade | Flexibilität | Exchange rate risk | Risk aversion | Flexibility | Wechselkursrisiko | Labour demand | Theorie der Unternehmung | Arbeitsnachfrage | International trade | Export | Theorie
    • jel: jel:F31 | jel:F41 | jel:F23 | jel:F16
      ddc: ddc:330

The purpose of this paper is to assess under what conditions exchange rate volatility exerts a positive effect on a firm's labour demand. As the exchange rate volatility increases, so does the value of the export option provided the firm under study is flexible. Flexibi... View more
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