| dc.creator |
Udomkerdmongkol, Manop |
|
| dc.creator |
Görg, Holger |
|
| dc.creator |
Morrissey, Oliver |
|
| dc.date |
2006 |
|
| dc.date.accessioned |
2013-10-16T06:55:06Z |
|
| dc.date.available |
2013-10-16T06:55:06Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
Discussion papers in economics School of Economics, Nottingham 2006,05 |
|
| dc.identifier |
http://hdl.handle.net/10419/3831 |
|
| dc.identifier |
ppn:513783016 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/3831 |
|
| dc.description |
This paper investigates the impact of exchange rates on US Foreign Direct Investment (FDI) inflows to a sample of 16 emerging market countries using panel data for the period 1990-2002. Three variables are used to capture separate exchange rate effects. The nominal bilateral exchange rate to the $US captures the value of the local currency (a higher value implies a cheaper currency and attracts FDI). Changes in the real effective exchange rate index (REER) proxy for expected changes in the exchange rate: an increasing (decreasing) REER is interpreted as devaluation (appreciation) being expected, so that FDI is postponed (encouraged). The temporary component of bilateral exchange rates is a proxy for volatility of local currency, which discourages FDI. The results support the ‘Chakrabarti and Scholnick’ hypothesis that, ceteris paribus, there is a negative relationship between the expectation of local currency depreciation and FDI inflows. Cheaper local currency (devaluation) attracts FDI while volatile exchange rates discourage FDI. |
|
| dc.language |
eng |
|
| dc.publisher |
ISchool of Economics, Nottingham |
|
| dc.relation |
Discussion papers in economics, School of Economics, Nottingham 2006,05 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
ddc:330 |
|
| dc.title |
Foreign direct investment and exchange rates: A case study of US FDI in emerging market countries |
|
| dc.type |
doc-type:workingPaper |
|