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| dc.title | Effects of Foreign-Currency Debt on Non-Financial Latin American Firms: Evidence from the 2000s |
| dc.contributor.author | García-Cicco, Javier |
| dc.contributor.author | Kawamura, Enrique |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.coverage | Mexico |
| dc.coverage | Colombia |
| dc.coverage | Chile |
| dc.coverage | Brazil |
| dc.coverage | Argentina |
| dc.coverage | Peru |
| dc.coverage | Latin America |
| dc.date.available | 2016-12-12T00:00:00 |
| dc.date.issue | 2016-12-09T00:00:00 |
| dc.description.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. |
| dc.format.extent | 71 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0009316 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/Effects-of-Foreign-Currency-Debt-on-Non-Financial-Latin-American-Firms-Evidence-from-the-2000s.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Foreign Currency Debt |
| dc.subject | Firm Performance |
| dc.subject | Financial Bond |
| dc.subject | Interest Rate |
| dc.subject | Corporate Debt |
| dc.subject | Risk Management |
| dc.subject | Foreign Exchange |
| dc.subject.jelcode | F34 - International Lending and Debt Problems |
| dc.subject.jelcode | G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill |
| dc.subject.keywords | credit constraints;commodity exporters;foreign currency debt;firm performance |
| dc.type | Technical Notes |
| idb.identifier.pubnumber | Technical Notes |
| idb.operation | RG-K1198 |