Abstract
This paper studies the impact of real exchange rate volatility on firm level investment using data on Indian manufacturing firms. Real exchange rate volatility is found to have a negative impact on firm level investment spending. The impact is non-linear in the level of exchange rate volatility and depends upon the size of firm’s mark-up and its trade exposure. Foreign equity ownership reduces the negative impact of exchange rate volatility significantly but the same cannot be said about access to domestic equity finance.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
