Corporate Investment and the Real Exchange Rate /

We examine the relationship between real exchange rate depreciations and indicators of firm performance using data for a sample of more than 30,000 firms from 66 (advanced and emerging market) countries over the 2000-2011 period. We show that depreciations boost profits, investment, and sales of fir...

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Hlavní autor: Dao, Mai Chi
Další autoři: Minoiu, Camelia, Ostry, Jonathan
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2017.
Edice:IMF Working Papers; Working Paper ; No. 2017/183
On-line přístup:Full text available on IMF
Popis
Shrnutí:We examine the relationship between real exchange rate depreciations and indicators of firm performance using data for a sample of more than 30,000 firms from 66 (advanced and emerging market) countries over the 2000-2011 period. We show that depreciations boost profits, investment, and sales of firms that are more financially-constrained and have higher labor shares. These findings are consistent with the view that depreciations boost internal financing opportunities by reducing real wages, thereby spurring investment. We show that these effects on firm performance are enduring, including in the market valuation of firms.
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Fyzický popis:1 online resource (47 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students