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This paper re-examines the role of exchange rates as determinant of FDI. It extends the analysis to include the issue … as a determinant of FDI. Details of FDI current behavior in Latin American are described and I propose a model of FDI to …
Persistent link: https://www.econbiz.de/10013047115
Economic theory provides two main explanations why changes in exchange rates can affect foreign direct investment (FDI …). According to a first explanation, FDI reacts to exchange rate changes if there are information frictions on capital markets and … explanation, FDI reacts to exchange rate changes if output and factor markets are segmented, and if firm-specific assets are …
Persistent link: https://www.econbiz.de/10003371083
Macroeconomic convergence is critical for member states to achieve the level of harmonization required for establishing a stable and resilient monetary union. The East African Community (EAC) member states, therefore, established set targets for macroeconomic convergence, intending to eliminate...
Persistent link: https://www.econbiz.de/10012803220
The exchange rate between the Naira and other currencies has continued to witness variability with depreciation. This variability makes it difficult to predict returns. Against this background, this paper examines the naira exchange rate vis-a-vis four other currencies. The impact of exogenous...
Persistent link: https://www.econbiz.de/10011661515
Over the last decade foreign bond portfolio positions in US dollar assets have risen above the reciprocal US investor positions in foreign currencies. In periods of increased economic uncertainty, institutional investors hedge their international bond positions, which creates a net hedging...
Persistent link: https://www.econbiz.de/10014236684
Over the last decade foreign bond portfolio positions in US dollar assets have risen above the reciprocal US investor positions in foreign currencies. In periods of increased economic uncertainty, institutional investors hedge their international bond positions, which creates a net hedging...
Persistent link: https://www.econbiz.de/10013440410
The majority of households across emerging market economies are excluded from the financial markets and cannot smooth consumption. I analyze the implications of this for optimal monetary policy and the corresponding choice of domestic versus external nominal anchor in a small open economy...
Persistent link: https://www.econbiz.de/10011487396
Sovereign borrowing during inflation surges is a litmus test of a government's ability to withstand and navigate macroeconomic shocks. Based on transaction-level bond issuance data, we explore how sovereign financing strategies respond to inflation surges and how policy practices affect their...
Persistent link: https://www.econbiz.de/10014250190
Foreign direct investment specially targeted to export sector is relatively new phenomenon in the global economy. Such inflow of foreign capital changes the sectoral composition of the economy and it has some influence on the exchange rate of the destination country. In this study, we attempt to...
Persistent link: https://www.econbiz.de/10013055910
foreign direct investment choice, the export strategy can be rejected although it is dominating the FDI project and although … continuous variables on export and FDI patterns. - export ; FDI ; uncertainty ; real option approach …
Persistent link: https://www.econbiz.de/10003636467