Currency volatility and global technological innovation

• 成果类型: Article
• 署名作者: Hsu, Po-Hsuan; Taylor, Mark P.; Wang, Zigan; Xu, Qi
• 署名单位: National Tsing Hua University; Washington University (WUSTL); University of Hong Kong; Zhejiang University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2022.103607
• 发表日期: 2022
• 关键词: Foreign exchange volatility; Technological innovation; patents; R&D

摘要

We investigate the real effects of foreign exchange (FX) volatility on technological innovation. Using a 32-market, three-decade sample, we show that heightened FX volatility associates with significantly lower firm-level R&D expenditures, patents granted, and forward citations. The negative FX volatility-innovation relation can be attributed to precautionary savings needs and trade slowdown. The relationship is stronger for firms with financial constraints, with the use of foreign debt, and in more open economies; it is weaker for firms with derivatives hedging, with higher sales, and in countries with better financial development.(c) 2022 Published by Elsevier B.V.