A Predictive Effect of Exchange Rates on Value-Added Free Trade

Round 1

Reviewer 1 Report

Revisions have significantly improved the paper. It is now publishable. 

The topic is of minor interest, as noted in my first review.

Author Response

Dear sir,

 

Thank you for your kind attention and advice. 

 

Sincerely,

 

Myoung Choi

Author Response File: Author Response.docx

Reviewer 2 Report

Glad that authors considered the suggestions I gave them.

Author Response

Dear sir,

 

I am pleased to notify you that I sent my reply to you as attached. Thank you very much.

 

Sincerely, 

 

Myoung Choi

Author Response File: Author Response.docx

Reviewer 3 Report

This study offers a novel approach to estimate the impacts of exchange rate misalingments on GVCs. An analysis is carried out for three countries during the period 1995-2015. The study finds a positive association between value-added exchange rate and value-added trade flows.

In general, the manuscript offers a very good explanation on the theoretical and empirical strategy to be followed. Results obtained are coherently explained, too. However, I find some aspects that may improve the quality of the manuscript:

General comments

1. The abstract needs to indicate the sample and the years analyzed clearer.
2. The research objective should be clearly specified in the introduction.
3. I can understand clearly that the author considers United States, Japan and Korea as countries to perform the analysis. However, beyond data availability, some other reasons to choose these countries may be specified (e.g. importance in the world economy, trade intensity, country size, currencies...).
4. As the explanation of results is long, a final paragraph at the section of results summarizing the main outcomes would be desirable to clarify potential readers.
5. In my opinion, the conclusions may indicate an important limitation: the analysis has only been carried out for three countries. The results may not necessarily be extrapolated to other countries. Then, future research may test this evidence for other countries.

Other minor comments

I find text in different colors, black and blue. The blue text is difficult to read. I suggest to choose another color to highlight changes in the manuscript.

Author Response

Dear sir,

 

I am pleased to notify you that I sent my reply to you as attached. Thank you very much. 

 

Sincerely,

 

Myoung S. Choi

Author Response File: Author Response.docx