A Study on the Impact of Real Exchange Rate Volatility of RMB on China's Foreign Direct Investment to Japan

2018 ◽  
Vol 6 (3) ◽  
pp. 24-36 ◽  
Author(s):  
Yugang He
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
Exchange Rate Volatility ◽  
The Impact ◽  
Real Exchange Rate Volatility

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.

The effects of real exchange rate volatility on sectoral export flows under intermediate and flexible exchange rate regimes: Empirical evidence from Turkey

2018 ◽  
Vol 4 (10) ◽  
pp. 172-184
Author(s):  
Bahar Erdal
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Regime ◽  
Exchange Rate Regimes ◽  
Exchange Rate Volatility ◽  
Flexible Exchange Rate ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Real Exchange Rate Volatility

The aim of this paper is to analyse empirically the effects of real exchange rate volatility on sectoral exports in Turkey under intermediate and flexible exchange rate regimes. The cointegration test and error correction models are used to test the long-run relationship and short-run effects, respectively. The estimation results show that the real exchange rate volatility has negative and significant effects on sectoral exports in both intermediate and flexible exchange rate regimes. These empirical results are consistent with the theory. However, the impact of real exchange rate and foreign income appeared to be quite different for the two exchange rate regimes. Further, research is required to analyse the impacts of real exchange rate and foreign income on sectoral exports. Keywords: Real exchange rate volatility, real exchange rate, intermediate exchange rate regime, flexible exchange rate regime, sectoral export.

scholarly journals Impact of the Exchange Rate and Price Volatility on FDI Inflows: Case of Morocco and Turkey

2019 ◽  
Vol 6 (3) ◽  
pp. 87
Author(s):  
Azzouzi Asmae ◽  
Bousselhami Ahmed
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Volatility ◽  
Price Volatility ◽  
Fdi Inflows ◽  
Turkish Government ◽  
The Exchange Rate ◽  
The Impact ◽  
Positive Effect ◽  
Real Exchange Rate Volatility

This paper aims to examine empirically the impact of price and real exchange rate volatility on Foreign Direct Investment (FDI) inflows. The sample used is based on the Mediterranean countries of Morocco and Turkey for the period 1990-2017. Empirical findings for Morocco revealing that in both short and long-terms, real exchange rate volatility is negative and highly significant. Price volatility depicts a positive effect, which means that greater volatility of inflation may cause greater marginal profitability of capital and hence increase investment. On the other hand, for Turkey, FDI inflows are found more elastic to domestic price fluctuations. The exchange rate volatility, instead, turned out to have a positive but insignificant effect. In addition, we found that the potential market size rate, institution quality, and infrastructure appear to be the key factors in attracting foreign capital in both countries. As for trade openness, a positive effect on FDI flows is only perceptible in Morocco. In addition, the series of structural reforms carried out by Turkish government have generated real benefits for foreign investors by creating the adequate environment. This has allowed Turkey to overcome the problems it was facing in attracting foreign investment during the period analysed.

Sign in / Sign up

Export Citation Format

Share Document