Foreign Direct Investment and Exchange Rate Regimes

Matthias Busse, Carsten Hefeker and Signe Nelgen
Additional contact information
Signe Nelgen: University of Adelaide

No 201015, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: The paper uses a comprehensive data set with bilateral direct investment flows and establishes the influence of the de-facto exchange rate regime for FDI flows. We find a strong and significant effect from fixed rates on bilateral FDI flows in developed economies, but no significant effect for developing countries. There is thus no general and uniform impact of stable exchange rates on FDI. We provide several possible explanations for this difference.

Keywords: Foreign Direct Investment; Multinational Enterprises; Exchanges Rate Regimes (search for similar items in EconPapers)
JEL-codes: F21 F23 O24 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2010
New Economics Papers: this item is included in nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Forthcoming in

Downloads: (external link)
https://www.uni-marburg.de/en/fb02/research-groups ... rs/15-2010_busse.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Foreign Direct Investment and Exchange Rate Regimes (2013)
Working Paper: Foreign direct investment and exchange rate regimes (2010)
Working Paper: Foreign direct investment and exchange rate regimes (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201015

Access Statistics for this paper

More papers in MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) Contact information at EDIRC.
Bibliographic data for series maintained by Bernd Hayo (hayo@wiwi.uni-marburg.de).