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:	2013-03-27
Authors:	Busse, Matthias ; Hefeker, Carsten ; Nelgen, Signe
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 33.2013, 1, p. 843-858
Publisher:	AccessEcon
Subject:	Foreign Direct Investment \| Multinational Enterprises \| Exchanges Rate Regimes

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Extent:	application/pdf
Type of publication:	Article
Classification:	F2 - International Factor Movements and International Business
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010633115