Uncertainty, Flexible Exchange Rates, and Agglomeration /

This paper shows that exchange rate variability promotes agglomeration of economic activity. Under flexible rates, firms located in large markets have lower variability of sales, reinforcing concentration of firms there. Empirical evidence on OECD countries demonstrates (1) that the negative effect...

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Bibliographic Details
Main Author: Ricci, Luca
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1998.
Series:IMF Working Papers; Working Paper ; No. 1998/009
Online Access:Full text available on IMF