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This paper investigates the impact of price and real exchange rate volatility on Foreign Direct Investment (FDI … volatility series are estimated through the Generalized Autoregressive Conditional Heteroscedasticity model (GARCH). Our results … statistically significant negative effect of exchange rate volatility on FDI is found. Price volatility, instead, turns out to be …
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In this paper we revisit medium- to long-run exchange rate determination, focusing on the role of international investment positions. To do so, we develop a new econometric framework accounting for conditional long-run homogeneity in heterogeneous dynamic panel data models. In particular, in our...
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