FrançaisEnglish

Érudit | Dépôt de documents >
CIRPÉE - Centre interuniversitaire sur le risque, les politiques économiques et l'emploi >
Cahiers de recherche du CIRPÉE >

Please use this identifier to cite or link to this item:

https://depot.erudit.org/id/003664dd

Title: Exchange Rate Fluctuations and Labour Market Adjustments in Canadian Manufacturing Industries
Authors: Bruneau, Gabriel
Moran, Kevin
Keywords: Exchange rate fluctuations
Manufacturing employment
Panel data estimation
Cointegration regression
Issue Date: 2012-07
Series/Report no.: Cahiers du CIRPÉE;12-27
Abstract: We estimate the impact of exchange rate fluctuations and other external factors on hours worked and employment in Canada’s manufacturing industries. The analysis is based on a dynamic model of labour demand and the econometric strategy employs a dynamic OLS approach for cointegrating regressions. Our data is drawn from a panel of 20 manufacturing industries, from Statistics Canada’s KLEMS database, and covers a long sample that includes two full cycles of appreciation and depreciation in the value of the Canadian dollar. We find that exchange rate fluctuations have economically and statistically significant effects on the labour choices of Canada’s manufacturing employers, and that these effects are stronger for industries more exposed to trade. In addition, we find that the enactment of NAFTA in 1994 has had a negative impact on labour in manufacturing industries. Finally, we report that employment reacts faster than total hours worked, suggesting that hours worked per employee react in a countercyclical fashion to exchange rate fluctuations.
URI: https://depot.erudit.org/id/003664dd
Appears in Collections:Cahiers de recherche du CIRPÉE

Files in This Item:

CIRPEE12-27.pdf, (Adobe PDF ; 815,85 kB)

Items in the Repository are protected by copyright, with all rights reserved, unless otherwise indicated.

 

About Érudit | Subscriptions | RSS | Terms of Use | Contact us |

Consortium Érudit ©  2014