|
|
|
|
||||
|
||||
The Impact of Exchange Rate on FDI and the Interdependence of FDI Over TimeJoseph D. AlbaNanyang Technological University (NTU) - Nanyang Business School Donghyun ParkAsian Development Bank - Economic Research Peiming WangAuckland University of Technology June 2009 Asian Development Bank Economics Working Paper Series No. 164 Abstract: The paper examines the impact of exchange rates on foreign direct investment (FDI) inflows into the United States in the context of a model that allows for the interdependence of FDI over time. Interdependence is modeled as a two-state Markov process where the two states can be interpreted as either a favorable or an unfavorable environment for FDI in an industry. Unbalanced industry-level panel data from the US wholesale trade sector are used in the analysis and yield two main results. First, the paper finds evidence that FDI is interdependent over time. Second, under a favorable FDI environment, the exchange rate.
Number of Pages in PDF File: 24 Keywords: Exchange rate, FDI, Markov, unbalanced panel JEL Classification: F31, F21, F23 working papers seriesDate posted: May 21, 2010Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.469 seconds
