Taux de change et décisions d’investissement au Canada: une analyse réalisée au niveau des emplacements

Abstract

Canada has long suffered from weak investment rates in capital goods relative to the United States. We study the relationship between exchange rate fluctuations and investment by using a rich panel data set at the level of the plant. Results show that all else being equal, Canadian firms on average tend to reduce their investment activity following an appreciation of the Canadian dollar. Moreover, the most affected firms are those that export a larger share of their output. This supports the hypothesis that following an appreciation of the currency, the negative impact on the competitiveness of domestic firms outweighs the benefits through increased purchasing power.