Exchange Rate Implications for Australian Manufacturing Investment and Exports

Robyn Swift
Additional contact information
Robyn Swift: Griffith Business School, Griffith University, Nathan Queensland Australia

Economic Analysis and Policy (EAP), 2007, vol. 37, issue 2, pages 145-162

Abstract: This paper uses time series data on individual industries to examine the relationship between exchange rates and investment for Australian manufacturing. The results show that the investment response to exchange rate changes for the total manufacturing sector varies positively with the export share of sales and negatively with the imported input use, but most individual industries do not show similar effects. The level of import competition is not a significant influence for either the total manufacturing sector or for individual industries. Exchange rate effects are limited to investment in equipment plant and machinery, with little impact on investment in buildings and structures.

Keywords: Exchange Rate; Exports; Import; Investment; Manufacturing (search for similar items in EconPapers)
JEL-codes: F14 F31 G31 L60 (search for similar items in EconPapers)
View list of references

Downloads: (external link)
http://eap-journal.com/download.php?file=649 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this article

More articles in Economic Analysis and Policy (EAP) from Queensland University of Technology (QUT), School of Economics and Finance
Contact information at EDIRC.
Series data maintained by Manuela Torgler ().