Growth under exchange rate volatility: Does access to foreign or domestic equity markets matter?

• 成果类型: Article
• 署名作者: Demir, Firat
• 署名单位: University of Oklahoma System; University of Oklahoma - Norman
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2012.08.001
• 发表日期: 2013
• 页码: 74-88
• 关键词: growth; Foreign direct investment; capital structure; exchange rate volatility; Manufacturing sector

摘要

Employing a firm-level dataset, this paper explores the effects of exchange rate volatility on the growth performances of domestic versus foreign, and publicly traded versus non-traded private manufacturing firms in a major developing country, Turkey. The empirical results using dynamic panel data estimation techniques and comprehensive robustness tests suggest that exchange rate volatility has a significant growth reducing effect on manufacturing firms. However, having access to foreign, and to a lesser degree, domestic equity markets is found to reduce these negative effects at significant levels. These findings continue to hold after controlling for firm heterogeneity due to differences in export orientation, external indebtedness, profitability, productivity, size, industrial characteristics, and time-variant institutional changes. (C) 2012 Elsevier B.V. All rights reserved.