Munich Personal RePEc Archive

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

Demir, Firat and Caglayan, Mustafa (2012): Firm Productivity, Exchange Rate Movements, Sources of Finance and Export Orientation.

[img]
Preview
PDF
MPRA_paper_37397.pdf

Download (321kB) | Preview

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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.