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This paper tries to investigate the Long Term and Short term casual relationship between Foreign Direct Investment (FDI) and Foreign exchange rates (FX) in India's post-liberalization period. Econometric models have been used in this study too long term relation is measured through Johansen...
Persistent link: https://www.econbiz.de/10012953137
Economic theory provides two main explanations why changes in exchange rates can affect foreign direct investment (FDI …
Persistent link: https://www.econbiz.de/10003371083
We revisit medium- to long-run exchange rate determination, focusing on the role of international investment positions. To do so, we make use of a new econometric framework accounting for conditional long-run homogeneity in heterogeneous dynamic panel data models. In particular, in our model the...
Persistent link: https://www.econbiz.de/10010414236
This paper re-examines the role of exchange rates as determinantof FDI. It extends the analysis to include the issue of how exchange rates determinethe decision of invest in one country depending on whether the firm is deciding toinvest on the country to service the local market or to invest on...
Persistent link: https://www.econbiz.de/10010762836
Resumen:This paper re-examines the role of exchange rates as determinant of FDI. It extends the analysis to include the issue of how exchange rates determine the decision of invest in one country depending on whether the firm is deciding to invest on the country to service the local market or to...
Persistent link: https://www.econbiz.de/10011147576
(IFS) (a database developed by the International Monetary Fund), and World Development Indicators (WDI) (a database … developed by the World Bank). We applied Generalized Autoregressive Conditional Heteroscedasticity (GARCH) (1,1) and threshold … negatively in OBOR-related countries, which correlates with the economic theory arguing that exchange rate volatility may hurt …
Persistent link: https://www.econbiz.de/10011964012
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
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
The paper examines the impact of exchange rates on foreign direct investment (FDI) inflows into the United States in the context of a model that allows for the interdependence of FDI over time. Interdependence is modeled as a two-state Markov process where the two states can be interpreted as...
Persistent link: https://www.econbiz.de/10013143281
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...
Persistent link: https://www.econbiz.de/10009161864