Investment and the Exchange Rate

Francesco Nucci and Alberto Pozzolo

Working Papers from Banca Italia - Servizio di Studi

Abstract: This paper investigates the relationship between exchange rate fluctuations and the investment decisions of a sample of Italian manufacturing firms. The results support the view that a depreciation of the exchange rate has a positive effect on investment through the revenue channel, and a negative effect through the cost channel.

Keywords: EXCHANGE RATE; INVESTMENTS; MARKETS STRUCTURES (search for similar items in EconPapers)
JEL-codes: D40 E22 F31 (search for similar items in EconPapers)
Pages: 43 pages
Date: 1998
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Citations: View citations in EconPapers (5)

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Working Paper: Investment and the Exchange Rate (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:banita:344

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