Export Sophistication and Exchange Rate Elasticities: The Case of Switzerland

摘要: In 2011, Switzerland announced a floor for the Swiss franc, and it immediately depreciated by 10 percent. Many argue that depreciations should not matter Switzerland's export basket because luxury brands high value added products predominate, these compete on quality rather than price. We measure sophistication of exports using Hausmann et al.'s (2007) Kwan's (2002) measures find them to be most sophisticated in world. also estimate equations price elasticities exceeding unity. These findings run counter claim countries exporting end goods have low exchange rate elasticities.