THE IMPACT OF EXCHANGE-RATE CHANGES ON INVESTMENT IN RESEARCH-AND-DEVELOPMENT

Authors
ZIETZ J FAYISSA B
Citation
J. Zietz et B. Fayissa, THE IMPACT OF EXCHANGE-RATE CHANGES ON INVESTMENT IN RESEARCH-AND-DEVELOPMENT, The Quarterly review of economics and finance, 34(2), 1994, pp. 195-211
Citations number
48
Categorie Soggetti
Business Finance",Economics
Journal title
The Quarterly review of economics and finance → ACNP
ISSN journal
10629769
Volume
34
Issue
2
Year of publication
1994
Pages
195 - 211
Database
ISI
SICI code
1062-9769(1994)34:2<195:TIOECO>2.0.ZU;2-V
Abstract
Panel data on 360 U.S. manufacturing firms over the years 1975 to 1987 are used to identify the response of RED spending to exchange rate ch anges. Only firms in industries with average RED spending of at least 3 percent of sales revenue react to an exchange rate appreciation with increased RED spending. Firms in industries with lower levels of RED intensity do not. This finding can be interpreted to mean that only RE D intensive firms react to an increase in competitive pressure with mo re RED effort.