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Exchange Rate as a Determinant of Foreign Direct Investment : Does It Really Matter? Theoretical Aspects, Literature Review and Applied Proposal

Ruiz, Isabel - 2014

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 invest...

Persistent link: https://www.econbiz.de/10013047115

International investment positions and exchange rate dynamics

Binder, Michael; Offermanns, Christian J. - 2014

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

Capital flows and GDP in emerging economies and the role of global spillovers

Beckmann, Joscha; Czudaj, Robert - 2017

This paper provides a global analysis of capital flow impacts on GDP for selected emerging economies. As additional control variables, we also include currency reserves and effective exchange rates in our analysis. We distinguish between gross and net capital flows and also assess the impact of...

Persistent link: https://www.econbiz.de/10011776962

Does Sovereign Risk in Local and Foreign Currency Differ?

Amstad, Marlene - 2018

Historically, sovereign debt in local currency has been considered safer than debt in foreign currency. Yet the literature offers scant theoretical or empirical guidance as to why such a gap exists, or why it appears to have slowly and steadily diminished for all regions over the past two...

Persistent link: https://www.econbiz.de/10012924033

The global capital flows cycle : structural drivers and transmission channels

Habib, Maurizio Michael; Venditti, Fabrizio - 2019

In this paper, we study the effects of structural shocks that influence global risk - the main factor behind a "global capital flows cycle" - and how risk, in turn, is transmitted to capital flows. Our results show that not all the risk shocks driving the global financial cycle have the same...

Persistent link: https://www.econbiz.de/10012009141

Cross-border currency exposures : new evidence based on an enhanced and updated dataset

Bénétrix, Agustín; Gautam, Deepali; Juvenal, Luciana; … - 2020

This paper provides a dataset on the currency composition of the international investment position for a group of 50 countries for the period 1990-2017. It improves available data based on estimates by incorporating actual data reported by statistical authorities and refining estimation methods....

Persistent link: https://www.econbiz.de/10012224121

Beyond Balassa and Samuelson : real convergence, capital flows, and competitiveness in Greece

Belke, Ansgar; Haskamp, Ulrich; Schnabl, Gunther; … - 2015

We scrutinize the role of capital flows for competitiveness in seven euro-area countries in the context of real convergence and crisis with a specific focus on Greece. The paper extends the seminal Balassa-Samuelson model to include international capital markets. Capital flows are assumed to be...

Persistent link: https://www.econbiz.de/10011350203

Equilibrium Exchange Rates in the New EU Members : External Imbalances vs. Real Convergence

Alberola, Enrique - 2007

New EU members share two very marked features which have conflicting implications for the evolution of their real exchange rates in the long run: accelerated growth and systematic current account imbalances, which would anticipate, respectively an appreciation and a depreciation of their...

Persistent link: https://www.econbiz.de/10012729819

Internationalization of Renminbi and the real effective exchange rate

Jančíková, Eva; Raneta, Leonid; Braga, Denys - In: Ekonomický časopis : časopis pre ekonomickú … 64 (2016) 7, pp. 666-685

Persistent link: https://www.econbiz.de/10011582784

Why is China so Attractive for FDI? The Role of Exchange Rates

Xing, Yuqing - 2005

(Renminbi) and the policy of pegging the Yuan to the Dollar both improved China's competitiveness in attracting Foreign Direct …This paper argues that China's exchange rate policy played a critical role in its FDI boom. Devaluation of the Yuan … Japanese direct investment in China. The devaluation of the Yuan substantially enhanced inflows of direct investment from Japan …

Persistent link: https://www.econbiz.de/10014061589