X hits on this document

PDF document

Exchange Rate Pegs and Foreign Exchange Exposure in East and South East Asia - page 11 / 33

138 views

0 shares

0 downloads

0 comments

11 / 33

for which we can reject the hypothesis that the coefficient on the exchange rate change is

zero. Here, we report the fraction for each of the major currencies in each period. As

might be expected, for many countries and sub-periods, the hypothesis is rejected for

somewhat fewer firms than when the entire period is used. Overall, we find nothing to

suggest that foreign exchange exposure has fallen over the sample period. The third

period, the one encompassing the Asian Crisis, shows the most exposure – particularly to

fluctuations in the dollar; and in many countries exposure is substantial in the final period

as well.

As shown in the first column, there is only a modest amount of exposure during the

first period, 1990 to 1992. Just over a quarter of the firms in Hong Kong appear to have

been exposed to the yen; 19 percent of the firms in Japan appear to have been exposed to

the dollar, and 18 percent of the Australian firms appeared to have been exposed to the

pound. In the second period, shown in column 2, more than half of the Japanese firms

show some exposure to the dollar, and nearly a third of the Taiwanese firms appear to be

exposed to the pound. The next set of columns gives the estimates for the third period,

when exposure was highest. During the third period, more than half of the firms in

Indonesia, Korea, Malaysia, and the Philippines, and about a third of those in Japan and

Singapore appear to be exposed to the dollar; and about a quarter of the firms in Singapore

appear to be exposed to the yen. In the most recent period, shown in column 4, many of

the firms in Korea, Taiwan, and Thailand appear to be exposed to fluctuations in the dollar;

and about a third of the Malaysian firms appear to be exposed to fluctuations in the yen.

Together, Tables 2 and 3 suggest that residual exchange rate exposure is significant

for many firms in East and South East Asia and in many periods. While not restricted

10

Document info
Document views138
Page views143
Page last viewedThu Dec 08 22:45:43 UTC 2016
Pages33
Paragraphs680
Words5041

Comments