Author: Alexandre Jeanneret
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Book Description
This paper proposes a real options theory to explore the effect of exchange rate uncertainty on foreign direct investment. Firms face the choice between serving foreign markets through exports and investing abroad to relocate production. The model predicts that the most productive firms invest abroad when exchange rate volatility is low and export otherwise, whereas the least productive firms invest abroad when volatility is high. The aggregation over heterogeneous firms produces a negative and non-linear relation between exchange rate uncertainty and total international investment. An analysis of 75 developed and emerging economies over the period 1996-2012 provides empirical support for the model's prediction.
International Firm Investment under Exchange Rate Uncertainty
Author: Alexandre Jeanneret
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Book Description
This paper proposes a real options theory to explore the effect of exchange rate uncertainty on foreign direct investment. Firms face the choice between serving foreign markets through exports and investing abroad to relocate production. The model predicts that the most productive firms invest abroad when exchange rate volatility is low and export otherwise, whereas the least productive firms invest abroad when volatility is high. The aggregation over heterogeneous firms produces a negative and non-linear relation between exchange rate uncertainty and total international investment. An analysis of 75 developed and emerging economies over the period 1996-2012 provides empirical support for the model's prediction.
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
Book Description
This paper proposes a real options theory to explore the effect of exchange rate uncertainty on foreign direct investment. Firms face the choice between serving foreign markets through exports and investing abroad to relocate production. The model predicts that the most productive firms invest abroad when exchange rate volatility is low and export otherwise, whereas the least productive firms invest abroad when volatility is high. The aggregation over heterogeneous firms produces a negative and non-linear relation between exchange rate uncertainty and total international investment. An analysis of 75 developed and emerging economies over the period 1996-2012 provides empirical support for the model's prediction.
Firm Investment Under Exchange Rate Uncertainty
Author: José Campa
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 312
Book Description
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 312
Book Description
Firm Investment Under Exchange Rate Uncertainty
Author: José Manuel Campa Fernández
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 312
Book Description
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 312
Book Description
Real Exchange Rate Uncertainty and Private Investment in Developing Countries
Author: Luis Servén
Publisher: World Bank Publications
ISBN:
Category : Capital stock
Languages : en
Pages : 24
Book Description
Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.
Publisher: World Bank Publications
ISBN:
Category : Capital stock
Languages : en
Pages : 24
Book Description
Serven examines empirically the link between real exchange rate uncertainty and private investment in developing countries using a large cross country-time series data set. He builds a GARCH-based measure of real exchange rate volatility and finds that it has a strong negative impact on investment, after controlling for other standard investment determinants and taking into account their potential endogeneity. The impact of uncertainty is not uniform, however. There is some evidence of threshold effects, so that uncertainty only matters when it exceeds some critical level. In addition, the negative impact of real exchange rate uncertainty on investment is significantly larger in economies that are highly open and in those with less developed financial systems.
The Effects of Real Exchange Rate Volatility on Sectoral Investment
Author: Bahar Erdal
Publisher: Routledge
ISBN: 1351801724
Category : Business & Economics
Languages : en
Pages : 172
Book Description
Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.
Publisher: Routledge
ISBN: 1351801724
Category : Business & Economics
Languages : en
Pages : 172
Book Description
Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.
The Impact of Exchange Rate Uncertainty on the Level of Investment
Exchange Rate Uncertainty and Firm Investment Plans
Strategic Foreign Investment and Endogenous Market Structure Under Exchange Rate Uncertainty
Author: David Nickerson
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 28
Book Description
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 28
Book Description
Exchange Rates and Corporate Performance
Author: Yakov Amihud
Publisher: Beard Books
ISBN: 9781587981593
Category : Business & Economics
Languages : en
Pages : 268
Book Description
This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.
Publisher: Beard Books
ISBN: 9781587981593
Category : Business & Economics
Languages : en
Pages : 268
Book Description
This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.
Exchange Rates and Strategic Decisions of Firms
Author: Jeannette Capel
Publisher: Purdue University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 216
Book Description
Discusses exchange rates and strategic decisions
Publisher: Purdue University Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 216
Book Description
Discusses exchange rates and strategic decisions