Exchange Rate Volatility and Inward Foreign Direct Investment in Greece: The Prospect of Emu Membership

International Review of Economics and Business (RISEC), Vol 49, No. 4, 2002

Posted: 26 Jun 2008

See all articles by Nicholas Apergis

Nicholas Apergis

University of Piraeus; University of Derby

Dimitrios Kyrkilis

affiliation not provided to SSRN

Anthony N. Rezitis

affiliation not provided to SSRN

Date Written: June 25, 2008

Abstract

The goal of this paper is to examine the impact of exchnage rate uncertainty on foreign direct investment (FDI) flows from European Union (EU) countries (the source countries) into Greece (the host country). Measuring exchange rate uncertainty through the ARCH methodology, the empirical results show that exchange rate uncertainty exerts a negative impact on FDI inflows from EU countries, implying the negative profit exposure of FDI investors as well as the absence of sophisticated capital markets in Greece.

Keywords: FDI, EMU, exchange rate volatility

JEL Classification: F21, F23, F31

Suggested Citation

Apergis, Nicholas and Kyrkilis, Dimitrios and Rezitis, Anthony N., Exchange Rate Volatility and Inward Foreign Direct Investment in Greece: The Prospect of Emu Membership (June 25, 2008). International Review of Economics and Business (RISEC), Vol 49, No. 4, 2002. Available at SSRN: https://ssrn.com/abstract=1151295

Nicholas Apergis

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

University of Derby ( email )

Kedleston Road
Derby, Derbyshire DE22 1GB
United Kingdom

Dimitrios Kyrkilis

affiliation not provided to SSRN ( email )

Anthony N. Rezitis (Contact Author)

affiliation not provided to SSRN

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