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.

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Year of publication:	2010
Authors:	Busse, Matthias ; Hefeker, Carsten ; Nelgen, Signe
Publisher:	Hamburg : Hamburgisches WeltWirtschaftsInstitut (HWWI)
Subject:	Foreign Direct Investment \| Multinational Enterprises \| Exchanges Rate Regimes

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Series:	HWWI Research Paper ; 2-17
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	664028381 [GVK] hdl:10419/48221 [Handle] RePEc:zbw:hwwirp:2-17 [RePEc]
Classification:	F21 - International Investment; Long-Term Capital Movements ; F23 - Multinational Firms; International Business ; O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10010305523