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The effect of the exchange rates on investment in Mexican manufacturing industry
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Caglayan, Mustafa and Munoz-Torres, Rebeca I. (2008) The effect of the exchange rates on investment in Mexican manufacturing industry. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.846).
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
This paper, considering revenue and cost exposure channels, investigates the effects of exchange rate behaviour on fixed capital investment in Mexican manufacturing sector over 1994-2002. We find that i) currency depreciation has a positive (negative) effect on fixed investment through the export (import) channel; ii) exchange rate volatility impacts mostly export oriented sectors; iii) the sensitivity of investment to exchange rate movements is stronger in non-durable goods sectors and industries with low mark-up ratios.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HG Finance | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Foreign exchange rates -- Mexico, Foreign exchange market -- Mexico, Manufacturing industries -- Mexico | ||||
Series Name: | Warwick economic research papers | ||||
Publisher: | University of Warwick, Department of Economics | ||||
Place of Publication: | Coventry | ||||
Official Date: | March 2008 | ||||
Dates: |
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Number: | No.846 | ||||
Number of Pages: | 20 | ||||
Status: | Not Peer Reviewed | ||||
Access rights to Published version: | Open Access (Creative Commons) |
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