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

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  • Demir, Firat
  • Caglayan, Mustafa

Abstract

We investigate the level and volatility effects of real exchange rates on the productivity growth of manufacturing firms with heterogeneous access to debt, and domestic and foreign equity markets in Turkey. We find that while exchange rate volatility affects productivity growth negatively, having access to foreign or domestic equity, or debt markets does not alleviate these effects. Furthermore, foreign owned or publicly traded companies do not appear to perform significantly better than the rest. We detect, however, that rm productivity is positively related to having access to external credit. Additionally, we find that while export (inward) oriented firms are aaffected less (more) by exchange rate appreciations, they are more (less) sensitive to exchange rate volatility.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37397.

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Date of creation: 01 Jan 2012
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Handle: RePEc:pra:mprapa:37397

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Keywords: Productivity growth; Exchange rate volatility; Source of finance; Capital structure; Export orientation;

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Cited by:
  1. 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.
  2. Jérôme Héricourt & Sandra Poncet, 2013. "Exchange Rate Volatility, Financial Constraints and Trade: Empirical Evidence from Chinese Firms," CESifo Working Paper Series 4303, CESifo Group Munich.
  3. 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.

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