Shigeyuki Abe, Kyoto University: Using Korean firm-level data, this paper finds that the exchange rate elasticities of firm exports are significant and negative for domestic firms or firms with no foreign subsidiary, whereas they are insignificant for foreign-owned firms or firms with foreign subsidiaries. Firms with a higher global value chain integration measure or more imported intermediate inputs have significantly lower exchange rate elasticities of firm exports. The authors conclude, accordingly, that developments in global production linkages in the last decade play an essential role in explaining lower exchange rate elasticity on exports.
My greatest dissatisfaction with the paper is in regard to groupings for regression. Domestic ownership (32,988 firms), foreign ownership (3,206), firms with no foreign subsidiary (21,410), and firms with foreign subsidiary (14,740) are separately and exclusively grouped in the paper. Assuming all the foreign ownership is with foreign subsidiary, domestic ownership with foreign subsidiary should total 11,534...