scholarly journals Real exchange-rate uncertainty and US foreign direct investment: an empirical analysis

2009 ◽  
Vol 145 (3) ◽  
pp. 513-530 ◽  
Author(s):  
Christian W. Schmidt ◽  
Udo Broll
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Exchange Rate Uncertainty

scholarly journals Exchange Rate Volatility and Foreign Direct Investment

2020 ◽  
Vol 12 (3) ◽  
pp. 38
Author(s):  
Samuel Erasmus Alnaa ◽  
Ferdinand Ahiakpor
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Volatility ◽  
External Factors ◽  
Conditional Heteroskedasticity ◽  
Data Set

The paper seeks to determine the effect of exchange rate volatility on foreign direct investment in Ghana from 1986 to 2017. The study adopted the Generalized Autoregressive Conditional Heteroskedasticity model to fit the data set from 1986-2017. The results indicate that, previous quarter information can influence current quarter volatility in Foreign Direct Investment. Real exchange rate, gross domestic product and treasure bill rate considered as external factors, are all found to be significant. This shows that, volatility from these factors can spillover to volatility in foreign direct investment.  To ensure stable inflow of foreign direct investment, we recommend that policies should gear towards stability in the forex market and interest rate among others.

scholarly journals Analysis of Current Account and Real Exchange Rate: Lower Middle Income Countries in Association of Southeast Asian Nations

2019 ◽  
Vol 8 (5C) ◽  
pp. 662-668
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rate ◽  
Current Account ◽  
Direct Investment ◽  
Real Exchange Rates ◽  
Middle Income ◽  
Negative Effect ◽  
Positive Effect

The study investigates the simultaneous equation model of the current account and real exchange rates in group of lower middle income in Association of Southeast Asian Nations (ASEAN). This study uses time series from 2000-2017 (18 years) and cross section 6 countries (Indonesia, Philippines, Vietnam, Lao, Myanmar, and Cambodia). There are three important findings in this study; first, for the current account is financial development has positive effect while government spending and foreign direct investment have negative effect; second, for the real exchange rate is economic openness, money supply, and interest rate have positive effect while foreign direct investment and current account have negative effect; third, only current account affects real exchange rates. Therefore, it is highly recommended for group of lower middle income in ASEAN to intervene in monetary policy variables so that uncontrolled deficits and fluctuations can achieve equilibrium in group of lower middle income in ASEAN.

Impact of Globalization on Economic Growth in Vietnam: An Empirical Analysis

2018 ◽  
pp. 32-47 ◽  
Author(s):  
Dat Tho Tran ◽  
Van Thi Cam Nguyen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Balance Of Trade ◽  
The Impact

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively.

scholarly journals Asymmetric effect of real exchange rate risk on foreign direct investment: Empirical evidence in ASEAN-4

2020 ◽  
Vol 2 (3) ◽  
pp. 91-105 ◽  
Author(s):  
Jaratin Lily ◽  
Mori Kogid ◽  
Dullah Mulok ◽  
Rozilee Asid
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
The Philippines ◽  
Exchange Rate Risk ◽  
Asymmetric Effect ◽  
Fdi Inflows ◽  
Rate Risk ◽  
Long Run

This study investigates the asymmetric effect of exchange rate risk (volatility) on the real foreign direct investment (FDI) inflows in Malaysia, the Philippines, Singapore, and Thailand (ASEAN-4) using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The results revealed the occurrence of a long-run asymmetric cointegration between real FDI inflows and real exchange rate risk in the Philippines, Singapore, and Thailand, but not in Malaysia. For the Philippines and Singapore, there is evidence of long-run asymmetry whereas short-run asymmetry exists for the case of Thailand. These findings imply that the asymmetric effects prove to be useful in providing essential information to the related parties on how FDI inflows react to exchange rate risks differently. Therefore, policymakers in ASEAN countries should be concerned about the asymmetric effect of the exchange rate volatility to mitigate the stylized effects of exchange rate movements on FDI inflows.

Foreign Direct Investment in R&D and Exchange Rate Uncertainty

2008 ◽  
Vol 20 (2) ◽  
pp. 207-223 ◽  
Author(s):  
Bettina Becker ◽  
Stephen G. Hall
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Uncertainty
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