Foreign Direct Investment and Exchange Rate Regimes

The paper uses a comprehensive data set with bilateral direct investment flows and establishes the influence of the de-facto exchange rate regime for FDI flows. We find a strong and significant effect from fixed rates on bilateral FDI flows in developed economies, but no significant effect for developing countries. There is thus no general and uniform impact of stable exchange rates on FDI. We provide several possible explanations for this difference.

MoreLess

Year of publication:	2010
Authors:	Busse, Matthias ; Hefeker, Carsten ; Nelgen, Signe
Institutions:	Volkswirtschaft Abteilung, Fachbereich Wirtschaftswissenschaften
Subject:	Foreign Direct Investment \| Multinational Enterprises \| Exchanges Rate Regimes

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	MAGKS Papers on Economics.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Forthcoming in Number 201015 29 pages
Classification:	F21 - International Investment; Long-Term Capital Movements ; F23 - Multinational Firms; International Business ; O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008621834