The research from GEP — the Globalisation and Economic Policy Centre at The University of Nottingham — challenges expectations that UK firms might increase overseas sales thanks to sterling’s recent plunge to a two-year low against the Euro.
Following the largest-ever study of its kind into currency movements, the research shows the sinking pound might have almost no effect whatsoever on the UK’s manufacturing exports.
A team of academics studied the exchange-rate movements and export patterns of more than 23,000 UK manufacturing firms over a 17-year period up to 2004.
They found shifts in rates had only a modest impact on total manufacturing exports, mainly among domestic companies.
Multinationals’ export levels were not affected at all — and currency movements did not influence firms’ decisions on entering or leaving a market.
Dr Richard Kneller, one of the report’s authors, said: “When sterling was very strong you heard people arguing that was why we had such a large trade gap.
“But the drop in the pound now is not going to persuade British manufacturers to get out their foreign phrasebooks and start trying to sell overseas.
“You would expect a strong pound to be bad for exports and a weak pound to lead to much greater exports, but this research paints a different picture — not helped by the fact that economies in Britain’s main export market, Europe, are also struggling.
“It will come as a disappointment to some people, but a falling pound is certainly not the magic bullet that they may be looking for.
“The current movements in sterling are towards the upper end of the changes that took place during our sample window and would suggest that it might increase total sales for the firm by just over one per cent. While not large, in a climate of deteriorating economic conditions any good news on sales will probably be very welcome.”
Tim Utton | alfa
Europe's microtechnology industry is attuned to growth
10.03.2017 | IVAM Fachverband für Mikrotechnik
Preferential trade agreements enhance global trade at the expense of its resilience
17.02.2017 | International Institute for Applied Systems Analysis (IIASA)
The Institute of Semiconductor Technology and the Institute of Physical and Theoretical Chemistry, both members of the Laboratory for Emerging Nanometrology (LENA), at Technische Universität Braunschweig are partners in a new European research project entitled ChipScope, which aims to develop a completely new and extremely small optical microscope capable of observing the interior of living cells in real time. A consortium of 7 partners from 5 countries will tackle this issue with very ambitious objectives during a four-year research program.
To demonstrate the usefulness of this new scientific tool, at the end of the project the developed chip-sized microscope will be used to observe in real-time...
Astronomers from Bonn and Tautenburg in Thuringia (Germany) used the 100-m radio telescope at Effelsberg to observe several galaxy clusters. At the edges of these large accumulations of dark matter, stellar systems (galaxies), hot gas, and charged particles, they found magnetic fields that are exceptionally ordered over distances of many million light years. This makes them the most extended magnetic fields in the universe known so far.
The results will be published on March 22 in the journal „Astronomy & Astrophysics“.
Galaxy clusters are the largest gravitationally bound structures in the universe. With a typical extent of about 10 million light years, i.e. 100 times the...
Researchers at the Goethe University Frankfurt, together with partners from the University of Tübingen in Germany and Queen Mary University as well as Francis Crick Institute from London (UK) have developed a novel technology to decipher the secret ubiquitin code.
Ubiquitin is a small protein that can be linked to other cellular proteins, thereby controlling and modulating their functions. The attachment occurs in many...
In the eternal search for next generation high-efficiency solar cells and LEDs, scientists at Los Alamos National Laboratory and their partners are creating...
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are less stable. Now researchers at the Technical University of Munich (TUM) have, for the first time ever, produced a composite material combining silicon nanosheets and a polymer that is both UV-resistant and easy to process. This brings the scientists a significant step closer to industrial applications like flexible displays and photosensors.
Silicon nanosheets are thin, two-dimensional layers with exceptional optoelectronic properties very similar to those of graphene. Albeit, the nanosheets are...
20.03.2017 | Event News
14.03.2017 | Event News
07.03.2017 | Event News
28.03.2017 | Life Sciences
28.03.2017 | Information Technology
28.03.2017 | Physics and Astronomy