References (29)



Foreign Direct Investment Outflows in Business-Cycle Fluctuations

Miao Wang

Marquette University - Department of Economics

M. C. Sunny Wong

University of San Francisco

May 9, 2005

This paper investigates business-cycle affects for a country's FDI outflows. OLS and panel regressions show that volatility in economic growth has a negative and significant impact on FDI outflows. Furthermore, we find different types of shocks have asymmetric impacts on FDI outflows. In other words, fluctuations of the same magnitude in a boom and a recession have different effects on FDI outflows. This relationship is more evident in OECD countries. We also include exchange rate volatility, lagged business-cycle measure, and control for potential endogeneity problem as robustness checks. Our findings are robust across different specifications.

Number of Pages in PDF File: 33

Keywords: Foreign Direct Investments, FDI, Business Cycles, Volatility, Determinants, Economic Growth

JEL Classification: E32, F21, F23

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Date posted: May 1, 2003  

Suggested Citation

Wang, Miao and Wong, M. C. Sunny, Foreign Direct Investment Outflows in Business-Cycle Fluctuations (May 9, 2005). Available at SSRN: http://ssrn.com/abstract=384543 or http://dx.doi.org/10.2139/ssrn.384543

Contact Information

Miao Wang
Marquette University - Department of Economics ( email )
P.O. Box 1881
Milwaukee, WI 53201-1881
United States
414-288-7310 (Phone)
414-288-5757 (Fax)
M. C. Sunny Wong (Contact Author)
University of San Francisco ( email )
2130 Fulton Street
Department of Economics
San Francisco, CA 94117-1080
United States
(415) 422-6194 (Phone)
HOME PAGE: http://www.usfca.edu/fac-staff/mwong11/
Feedback to SSRN

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