@misc{12620,
title = {Effects of Foreign-Currency Debt on Non-Financial Latin American Firms: Evidence from the 2000s},
author = {García-Cicco, Javier and Kawamura, Enrique},
year = {2016},
doi = {10.18235/0009316},
abstract = {This paper empirically tests the effects of foreign currency debt on economic performance and investment behavior in non-financial firms in six Latin America and Caribbean countries. It is found find that domestic-currency depreciations may surprisingly increase the exchange-rate induced profits of particularly highly foreign currency-indebted firms (especially those that are foreign owned and others with foreign links). Such depreciations have only a mild correlation with gross profits. Foreign-currency debt seems to have ambiguous effects on fixed investment purchases behavior, possibly attributable to non-financial firms' behavior as financial intermediaries. This effect tends to vanish when financial derivatives are considered.},
url = {https://doi.org/10.18235/0009316}
}