Autor: Pérez Artica Rodrigo *, Rabinovich Joel**
Institución: (*)IIESS, UNS-CONICET - UNS, (**)King's College London
Año: 2025
JEL: F31, E22
Resumen:
Do exchange rate depreciations curtail investment when firms owe in foreign currency? Using a novel dataset on 7,136 firms from 27 emerging markets (2001–2022), we merge detailed debt composition with balance sheet data to revisit this question. Contrary to conventional wisdom, we find little evidence that foreign-denominated debt systematically depresses capital expenditures. The exception arises in episodes of sharp depreciations, when investment does contract for exposed firms. Our results suggest that foreign debt is not inherently problematic, but it becomes a source of vulnerability under extreme currency shocks.