Klein, Michael W.; Peek, Joe; Rosengren, Eric - National Bureau of Economic Research (NBER) - 2000
The relative wealth hypothesis of Froot and Stein (1991), motivated by the aggregate correlation between real exchange rates and foreign direct investment (FDI) observed in the 1980s, cannot explain one of the major shifts in FDI in the 1990s: the continued decline in Japanese FDI during a...