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Firm Productivity, Exchange Rate Movements, Sources of Finance, and Export Orientation

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  • Caglayan, Mustafa
  • Demir, Firat

Abstract

We investigate the level and volatility effects of real exchange rates on productivity growth of manufacturing firms with heterogeneous access to debt, and domestic and foreign equity markets in Turkey. We find that while volatility affects productivity growth negatively, having access to foreign or domestic equity, or debt markets does not alleviate these effects. Furthermore, foreign or publicly traded companies do not appear to perform significantly better than the rest. We detect, however, that productivity is positively related to credit market access. Additionally, we find that while export-oriented firms react positively to currency appreciations, they are hurt more from volatility.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 54 (2014)
Issue (Month): C ()
Pages: 204-219

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Handle: RePEc:eee:wdevel:v:54:y:2014:i:c:p:204-219

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Keywords: productivity growth; exchange rate volatility; sources of finance; capital structure; export orientation;

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Cited by:
  1. Jérôme Héricourt & Sandra Poncet, 2012. "Exchange Rate Volatility, Financial Constraints and Trade: Empirical Evidence from Chinese Firms," Working Papers 2012-35, CEPII research center.
  2. Ana María Iregui & Luis Fernando Melo V. & María Teresa Ramírez, 2013. "Efecto de la volatilidad y del desalineamiento de la tasa de cambio real sobre la actividad de las empresas en Colombia," Borradores de Economia 801, Banco de la Republica de Colombia.
  3. Ana María Iregui B. & Luis Fernando Melo V. & María Teresa Ramírez G. & Carmen Cecilia Delgado R., 2013. "El efecto de la volatilidad y del desalineamiento de la tasa de cambio real sobre la actividad de las empresas en Colombia," BORRADORES DE ECONOMIA 011106, BANCO DE LA REPÚBLICA.

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