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The choice of an exchange-rate regime is considered by integrating the determinants of multinational firms locations. We consider the case of a risk-adverse multinational firm which contemplates relocating two alternative foreign locations in order to re-export. We explicit the trade-off between...
Persistent link: https://www.econbiz.de/10014164146
This paper considers the nature and the distribution of trade and FDI effects of a potential enlargement of the European Monetary Union (EMU) to the 10 countries that obtained EU membership in 2004. One-way and two-way error component gravity models are estimated using a data set of unbalanced...
Persistent link: https://www.econbiz.de/10011372974
Estimation and simulation of sustainable real exchange rates in some of the new EU accession countries point to potential difficulties in sustaining the ERM2 regime if entered too soon and with weak policies. According to the estimates, the Czech, Hungarian, and Polish currencies were overvalued...
Persistent link: https://www.econbiz.de/10013318089
China introduced yuan-denominated trade settlement in July 2009 to help its exporters avoid exchange rate risk. The … foreign and 10 of those Japanese, have been selected to participate in the pilot program on the mainland China side. Reasons … forward in stages. China's foreign exchange and capital transactions have already been liberalized roughly to the point where …
Persistent link: https://www.econbiz.de/10013141610
This paper argues that the way in which China is portrayed in the revived Bretton Woods thesis (BW2) is not consistent … China's long-term economic development. Whether it is the behavior of China's real exchange rate, the costs of sterilizing … large reserve inflows, the role that FDI plays in financing China's fixed asset investment, the participation of foreign …
Persistent link: https://www.econbiz.de/10012711960
The paper investigates the impact of exchange rates on US foreign direct investment (FDI) flows to a sample of 16 emerging market countries using annual panel data for the period 1990-2002. Three separate exchange rate effects are considered: the value of the local currency (a cheaper currency...
Persistent link: https://www.econbiz.de/10003793565
This paper analyzes the impact of exchange rate levels and exchange rate uncertainty on U.S. foreign direct investment into Latin America. By decomposing exchange rate uncertainty into temporary (short-run) and permanent (long-run) components, we further explore whether the nature of uncertainty...
Persistent link: https://www.econbiz.de/10012766445
and foreign direct investment (FDI) inflows in China. The justification is that the undertaken topic is preeminent for … devising strategies to promote economic development, thus, a course that carries much at stake not only for China but also for … of China are analyzed. The main empirical results indicate that a change in exchange rates negatively affects FDI inflows …
Persistent link: https://www.econbiz.de/10013246126
China and ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand). The empirical results generally support the …
Persistent link: https://www.econbiz.de/10012729600
and foreign direct investment (FDI) inflows in China. The justification is that the undertaken topic is preeminent for … devising strategies to promote economic development, thus, a course that carries much at stake not only for China but also for … of China are analyzed. The main empirical results indicate that a change in exchange rates negatively affects FDI inflows …
Persistent link: https://www.econbiz.de/10012237231