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EXCHANGE RATE EFFECTS AND FOREIGN DIRECT INVESTMENT INFLOW

open access: yesEXCHANGE RATE EFFECTS AND FOREIGN DIRECT INVESTMENT INFLOW
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Linking Exchange Rates to Foreign Direct Investment

The International Trade Journal, 2008
This study investigates the effect of fluctuations in and volatility of the real exchange rate on foreign direct investment. A fixed-effects variation of the gravity model is applied to panel data of 55 countries from 1980 to 1997. Weak host currencies and greater exchange rate volatility are found to discourage FDI flows. Further, an existing presence
R. MacDermott
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Exchange Rates and Foreign Direct Investment

Journal of Policy Modeling, 1998
G. Stevens
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