Deng-Shing Huang, Institute of Economics, Academia Sinica: The paper aims to investigate the impact of global linkage on exchange elasticity of firm's exports, using Korean firm-level data from 2006 to 2015. The empirical strategy is quite straightforward but suitable. Only firms involving export are included in the sample, and the total sample is then divided into paired subsamples, that is, firms with/without foreign ownership; firms with/without foreign subsidiaries. The estimated coefficients of log real effective exchange rate (i.e., exchange rate elasticity) are then compared between each pair of subsamples. Empirical results show that the estimated exchange rate elasticity is lower (closer to zero) or insignificant for the subsample of firms with foreign ownership or having foreign subsidiary than that of its counter subsample. Further robustness empirical efforts are conducted to reconfirm the finding, by excluding export to other-than-foreign-subsidiary firms, or by considering industry-specific share of imported import share.
The paper...