This study presents a preliminary report on the relationship between exchange rates and investment. It tracks investment in Quebec, the United States and elsewhere in Canada, and provides a review of the literature on the subject. One of the conclusions of the report is that, according to empirical studies, the data show a clear relationship between exchange rates and investment. The Canadian literature on this topic is very limited, however, despite the specific nature of the Canadian situation. Moreover, although the Canadian dollar made net gains between 2002 and 2007, investment by Quebec and Canadian companies in materials and equipment from the United States did not increase. In closing, the report presents the data and methodology that will be used in the empirical study now in progress.

Da Silva, L., Vincent, N., Taux de change, investissement et productivité, Centre for Productivity and Prosperity, HEC Montréal, September 2009. (Available in French only)