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Vliv zhodnocení koruny na český podnikový sektor
[Effect of czech crown appreciation on czech corporate sector]

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  • Filip Novotný

Abstract

The Czech economy was characterized by a high nominal and real appreciation which was caused by great foreign direct investment inflow in 2002. The paper analyzes the effect of the Czech currency appreciation on industrial branches and the industry as a whole using a simple model based on a corporate accounting. The outcome of the model is then compared with actual y-o-y data of non-financial corporations in 2002. There is significant difference between industrial branches in sensitivity to appreciation. Foreign owned branches are able to limit the negative impact of appreciation, whereas the worst situation is in branches owed only by residents and public. The property structure and in addition the labor intensity of production have had a great effect on corporate finance after the rapid crown appreciation.

Suggested Citation

  • Filip Novotný, 2003. "Vliv zhodnocení koruny na český podnikový sektor [Effect of czech crown appreciation on czech corporate sector]," Politická ekonomie, Prague University of Economics and Business, vol. 2003(5), pages 661-675.
    • Handle: RePEc:prg:jnlpol:v:2003:y:2003:i:5:id:419
    DOI: 10.18267/j.polek.419
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    References listed on IDEAS

    as
    1. Vladislav Flek & Mojmír Hájek & Jaromír Hurník & Ladislav Prokop & Lenka Racková, 2001. "Výkonnost a struktura nabídkové strany [Supply-side performance and structure]," Politická ekonomie, Prague University of Economics and Business, vol. 2001(6).
    2. Otakar Turek, 2002. "Jsou obavy z apreciace Koruny opodstatněné? [Should we be concerned about appreciation of the Crown?]," Politická ekonomie, Prague University of Economics and Business, vol. 2002(4).
    3. Takatoshi Ito & Mr. Tamim Bayoumi & Mr. Peter Isard & Mr. Steven A. Symansky, 1996. "Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region," IMF Occasional Papers 1996/011, International Monetary Fund.
    4. Boyd, Derick & Caporale, Gugielmo Maria & Smith, Ron, 2001. "Real Exchange Rate Effects on the Balance of Trade: Cointegration and the Marshall-Lerner Condition," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 187-200, July.
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    More about this item

    Keywords

    currency appreciation; property structure; investment inflow; corporate accounting; value added; profit before tax;
    All these keywords.

    JEL classification:

    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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