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Exchange rate exposure for exporting and domestic firms in central and Eastern Europe

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  • Asif, Raheel
  • Frömmel, Michael
Abstract
We analyze the exchange rate exposure of firms in Russia and European Union (EU) accession countries from Central and Eastern Europe: Poland, Hungary, and the Czech Republic. We control for potential effects of exchange rate regimes, the subprime mortgage and Russian financial crisis, EU accession, and the turn-of-the-year effect. We find significant exposure for 60% and 52% of firms in the CEEC-3 and Russia, respectively. Magnitude and direction of firms' exposure depends on the currency pair (versus either the euro or U.S. dollar) and differs between CEEC-3 and Russia. Differences may result from dissimilar exposure channels in the respective economies.

Suggested Citation

  • Asif, Raheel & Frömmel, Michael, 2022. "Exchange rate exposure for exporting and domestic firms in central and Eastern Europe," Emerging Markets Review, Elsevier, vol. 51(PA).
    • Handle: RePEc:eee:ememar:v:51:y:2022:i:pa:s1566014121000716
    DOI: 10.1016/j.ememar.2021.100863
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    More about this item

    Keywords

    Exchange rate exposure; Transition economies; Central and Eastern Europe; International finance;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G1 - Financial Economics - - General Financial Markets
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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