Firm productivity, exchange rate movements, sources of finance and export orientationInventories and sales uncertainty

Mustafa Caglayan () and Firat Demir

No 2011004, Working Papers from The University of Sheffield, Department of Economics

Abstract: We investigate the level and volatility effects of exchange rates on the productivity growth of manufacturing firms with heterogenous 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 firm productivity is positively related to having access to external credit. Additionally, we find that while export (inward) oriented firms are affected less (more) by exchange rate appreciations, they are more (less) sensitive to exchange rate volatility.

Keywords: Productivity growth; Exchange rate volatility; Source of finance; Capital structure; Export orientation (search for similar items in EconPapers)
JEL-codes: F23 F31 F43 G31 G32 L6 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2011-02, Revised 2011-02
New Economics Papers: this item is included in nep-eff and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2011004

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