@article{Heterogeneous:1567,
      recid = {1567},
      author = {Tomlin, Ben and Fung, Loretta},
      title = {The Effect of Exchange Rate Movements on Heterogeneous  Plants: A Quantile Regression Analysis},
      address = {2010},
      pages = {1 online resource (33 pages)},
      abstract = {In this paper, we examine how the effect of movements in  the real exchange rate on manufacturing plants depends on  the plant's placement within the productivity distribution.  Appreciations of the local currency expose domestic plants  to more competition from abroad as export opportunities  shrink and import competition intensifies. As a result,  smaller less productive plants are forced from the market,  which truncates the lower end of the productivity  distribution. For surviving plants, appreciations can lead  to a reduction in plant size, which, in the presence of  scale economies, can lower productivity. We examine these  mechanisms using quantile regression, which allows for the  study of the conditional distribution of industry  productivity. Using plant-level data that covers the entire  Canadian manufacturing sector from 1984 to 1997, we find  that many industries exhibit a downward sloping quantile  regression curve, meaning that movements in the exchange  rate do, indeed, have distributional effects on  productivity.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1567},
      doi = {https://doi.org/10.34989/swp-2010-25},
}