Levy-Yeyati, Eduardo Levy; Panizza, Ugo; Stein, Ernesto - 2011
In this paper, we examine how the business and interest rate cycles in developed countries affects FDI to developing … countries. After aggregating flows into three big source areas (the U.S., Europe and Japan), we find FDI flows to be … cyclical behavior or mild procyclical behavior. This finding is consistent with the fact that FDI outflows and local investment …