• myGriffith
    • Staff portal
    • Contact Us⌄
      • Future student enquiries 1800 677 728
      • Current student enquiries 1800 154 055
      • International enquiries +61 7 3735 6425
      • General enquiries 07 3735 7111
      • Online enquiries
      • Staff phonebook
    View Item 
    •   Home
    • Griffith Research Online
    • Journal articles
    • View Item
    • Home
    • Griffith Research Online
    • Journal articles
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Browse

  • All of Griffith Research Online
    • Communities & Collections
    • Authors
    • By Issue Date
    • Titles
  • This Collection
    • Authors
    • By Issue Date
    • Titles
  • Statistics

  • Most Popular Items
  • Statistics by Country
  • Most Popular Authors
  • Support

  • Contact us
  • FAQs
  • Admin login

  • Login
  • Measuring the Effects of Exchange Rate Changes on Investment in Australian Manufacturing Industry

    Thumbnail
    View/Open
    39496_1.pdf (73.27Kb)
    Author(s)
    Swift, Robyn
    Griffith University Author(s)
    Swift, Robyn F.
    Year published
    2006
    Metadata
    Show full item record
    Abstract
    This paper uses an empirical framework derived from an optimising adjustment-cost model of investment to examine the relationship between exchange rates and investment in Australian manufacturing industry between 1988 and 2001. The results show that the response of investment to exchange rate changes varies with the external exposure of industry, positively with export share of sales and negatively with the share of imported inputs into production. Industry competitive structure, represented by markup of price over cost, interacts with external exposure so that lower levels of markup increase the responsiveness of investment ...
    View more >
    This paper uses an empirical framework derived from an optimising adjustment-cost model of investment to examine the relationship between exchange rates and investment in Australian manufacturing industry between 1988 and 2001. The results show that the response of investment to exchange rate changes varies with the external exposure of industry, positively with export share of sales and negatively with the share of imported inputs into production. Industry competitive structure, represented by markup of price over cost, interacts with external exposure so that lower levels of markup increase the responsiveness of investment to exchange rate changes. For Australian manufacturing industry, a 10% real appreciation of the Australian dollar (AUD) leads to an average 8.0% decrease in total investment through the export share channel over the period, and an average 3.8% increase in total investment through the imported input share channel, with most of the response occurring through investment in Equipment, Plant and Machinery.
    View less >
    Journal Title
    The Economic Record
    Volume
    82
    Issue
    S1
    Publisher URI
    http://www.blackwellpublishing.com/
    DOI
    https://doi.org/10.1111/j.1475-4932.2006.00329.x
    Copyright Statement
    © 2006 Blackwell Publishing. This is the author-manuscript version of the paper. Reproduced in accordance with the copyright policy of the publisher. The definitive version is available at www.blackwell-synergy.com
    Subject
    Economics
    Commerce, Management, Tourism and Services
    Publication URI
    http://hdl.handle.net/10072/16651
    Collection
    • Journal articles

    Footer

    Disclaimer

    • Privacy policy
    • Copyright matters
    • CRICOS Provider - 00233E

    Tagline

    • Gold Coast
    • Logan
    • Brisbane - Queensland, Australia
    First Peoples of Australia
    • Aboriginal
    • Torres Strait Islander