Author: Andrew James Abbott
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Abstract: This paper examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975 to 2001. We use both fixed effects and dynamic generalised methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors
Do Exchange Rates Have Any Impact Upon UK Inward Foreign Direct Investment?.
Author: Andrew James Abbott
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Abstract: This paper examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975 to 2001. We use both fixed effects and dynamic generalised methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Abstract: This paper examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975 to 2001. We use both fixed effects and dynamic generalised methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors
The Composition of Capital Flows
Author: Mr.Norbert Funke
Publisher: International Monetary Fund
ISBN: 1451860595
Category : Business & Economics
Languages : en
Pages : 30
Book Description
Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging markets and to draw policy conclusions for South Africa. We estimate a dynamic panel for up to 81 emerging markets using GMM (Generalized Method of Moments) techniques. The results suggest that further trade and capital control liberalization would increase the share of FDI. Additionally, a reduction in exchange rate volatility would affect the composition of capital flows in favor of FDI.
Publisher: International Monetary Fund
ISBN: 1451860595
Category : Business & Economics
Languages : en
Pages : 30
Book Description
Over the past decade, South Africa has attracted relatively little foreign direct investment (FDI), but considerable amounts of portfolio inflows. In this context, the objective of the paper is twofold: to identify the determinants of the level and composition of capital flows to emerging markets and to draw policy conclusions for South Africa. We estimate a dynamic panel for up to 81 emerging markets using GMM (Generalized Method of Moments) techniques. The results suggest that further trade and capital control liberalization would increase the share of FDI. Additionally, a reduction in exchange rate volatility would affect the composition of capital flows in favor of FDI.
Foreign Direct Investment Statistics How Countries Measure FDI
Author: OECD
Publisher: OECD Publishing
ISBN: 1589062205
Category :
Languages : en
Pages : 169
Book Description
Foreign Direct Investment Statistics: How Countries Measure FDI shows progress in recent years in moving toward compilation in accordance with international standards that have been established by the International Monetary Fund (IMF) and the ...
Publisher: OECD Publishing
ISBN: 1589062205
Category :
Languages : en
Pages : 169
Book Description
Foreign Direct Investment Statistics: How Countries Measure FDI shows progress in recent years in moving toward compilation in accordance with international standards that have been established by the International Monetary Fund (IMF) and the ...
The Real Exchange Rate and Foreign Direct Investment in the United States
Author: Michael W. Klein
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 42
Book Description
There has been a significant correlation between United States inward foreign direct investment and the United States real exchange rate since the 1970s. Two alternative reasons for this relationship are that the real exchange rate affects the relative cost of labor and that the real exchange rate alters relative wealth across countries. In this paper we explore these alternatives by examining the determinants of four measures of inward foreign direct investment to the United States from seven industrial countries over the period 1979 to 1991. We find strong evidence that relative wealth significantly affects U.S. inward foreign direct investment. We find no evidence that relative wages have a significant impact on the determination of U.S. foreign direct investment. These results are robust to the choice of countries in our sample and when controlling for changes in tax codes.
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 42
Book Description
There has been a significant correlation between United States inward foreign direct investment and the United States real exchange rate since the 1970s. Two alternative reasons for this relationship are that the real exchange rate affects the relative cost of labor and that the real exchange rate alters relative wealth across countries. In this paper we explore these alternatives by examining the determinants of four measures of inward foreign direct investment to the United States from seven industrial countries over the period 1979 to 1991. We find strong evidence that relative wealth significantly affects U.S. inward foreign direct investment. We find no evidence that relative wages have a significant impact on the determination of U.S. foreign direct investment. These results are robust to the choice of countries in our sample and when controlling for changes in tax codes.
Impact of Exchange Rates Uncertainty on Foreign Direct Investment
Author: Richard S. Xiong
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 228
Book Description
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 228
Book Description
The Impact of Foreign Direct Investment on the United Kingdom
Author: Max David Steuer
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 238
Book Description
Study of the effects of inward direct investment on the economy of the United Kingdom.
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 238
Book Description
Study of the effects of inward direct investment on the economy of the United Kingdom.
The Impact of Exchange Rate Volatility on Us Direct Investment
Author: Holger Görg
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
In this paper we examine the impact of the level of the exchange rate, volatility in the exchange rate and exchange rate expectations on outward US foreign direct investment in 12 developed countries and inward foreign direct investment to the USA from those countries for the period from 1983 to 1995. In our empirical analysis we find no evidence for an effect of exchange rate variation on either US outward investment or inward investment in the USA. This result is robust to a number of different estimation procedures. As regards the level of the exchange rate we find a positive relationship between US outward investment and appreciation in the host country currency while there is a negative relationship between US inward investment and appreciation in the dollar.
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
In this paper we examine the impact of the level of the exchange rate, volatility in the exchange rate and exchange rate expectations on outward US foreign direct investment in 12 developed countries and inward foreign direct investment to the USA from those countries for the period from 1983 to 1995. In our empirical analysis we find no evidence for an effect of exchange rate variation on either US outward investment or inward investment in the USA. This result is robust to a number of different estimation procedures. As regards the level of the exchange rate we find a positive relationship between US outward investment and appreciation in the host country currency while there is a negative relationship between US inward investment and appreciation in the dollar.
Risk and Foreign Direct Investment
Author: C. White
Publisher: Springer
ISBN: 0230624839
Category : Business & Economics
Languages : en
Pages : 274
Book Description
Incorporating an accurate measure of risk is important to the appraisal of an international investment. This book examines and recommends how decisions on international investment projects are made. Critiquing and integrating existing theory, it shows how risk can be incorporated into the present value formula produce a clear decision rule.
Publisher: Springer
ISBN: 0230624839
Category : Business & Economics
Languages : en
Pages : 274
Book Description
Incorporating an accurate measure of risk is important to the appraisal of an international investment. This book examines and recommends how decisions on international investment projects are made. Critiquing and integrating existing theory, it shows how risk can be incorporated into the present value formula produce a clear decision rule.
Foreign Direct Investment
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451963513
Category : Business & Economics
Languages : en
Pages : 32
Book Description
This paper summarizes the theory and empirical evidence on the determinants of foreign direct investment. These determinants include expected relative rates of return, risk diversification, market size, technological advantage, market failure, oligopolistic rivalry, liquidity, currency strength, political instability, tax policy, and government regulations. While most explanations of foreign direct investment receive some empirical support, there is not sufficient favorable evidence on any one of them to merit rejection of all the others.
Publisher: International Monetary Fund
ISBN: 1451963513
Category : Business & Economics
Languages : en
Pages : 32
Book Description
This paper summarizes the theory and empirical evidence on the determinants of foreign direct investment. These determinants include expected relative rates of return, risk diversification, market size, technological advantage, market failure, oligopolistic rivalry, liquidity, currency strength, political instability, tax policy, and government regulations. While most explanations of foreign direct investment receive some empirical support, there is not sufficient favorable evidence on any one of them to merit rejection of all the others.
Foreign Direct Investment, Exchange Rate Variability and Demand Uncertainity
Author: Linda S. Goldberg
Publisher:
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 40
Book Description
Publisher:
ISBN:
Category : Demand (Economic theory)
Languages : en
Pages : 40
Book Description