DYNAMIC PERSPECTIVE ON THE TRIANGLE FOREIGN DIRECT INVESTMENTS – EXCHANGE RATE – CAPITAL MARKET

Adrian Morar Triandafil, Cristina Morar Triandafil () and Aniela Danciu
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Adrian Morar Triandafil: Romanian Banking Institute
Aniela Danciu: Bucharest Academy of Economic Studies
Authors registered in the RePEc Author Service: Teodor Adrian Morar Triandafil ()

Theoretical and Applied Economics, 2011, vol. 5(558)(supplement), issue 5(558)(supplement), 624-634

Abstract: This paper focuses on the triangular causal relationship between foreign direct investments, exchange rate and capital market at the level of the CEE countries. For this purpose, we use the weight of market capitalization of listed companies into GDP as proxy for the degree corresponding to the stock market development, the variability of the exchange rate as proxy for the macroeconomic environment and weight of foreign direct investments into GDP as a proxy for the country’s capacity to attract foreign investors and to recover some macroeconomic deficiencies. The perspective is a dynamic one, conceiving each variable as a cause and effect in the system of relashionships.

Keywords: FDI; exchange rate; market capitalization. (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:5(558)(supplement):y:2011:i:5(558)(supplement):p:624-634

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