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A number of studies (Head and Ries 1999; Fung 2008) have looked at how changes in exchange rates affect the scale of production. Using a panel of 230 Canadian manufacturing industries between 1988-1994, Head and Ries (1999) find that the overall growth in average output per plant is due to undercounting of small establishments, changes in the industry composition, exchange rate depreciation, and U.S. tariff reductions. Fung (2008), however, finds that real-currency appreciations lead to scale expansion of surviving firms in Taiwanese manufacturing plants. Baggs et al. (2009) examine the issue of exchange rate and firm survival, but differ from this paper in terms of data, sample period, methodology and findings.