Foreign Direct Investment and Exchange Rate Regimes

Matthias Busse, Carsten Hefeker and Signe Nelgen ()
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Signe Nelgen: University of Adelaide

Economics Bulletin, 2013, vol. 33, issue 1, 843-858

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: F2 (search for similar items in EconPapers)
Date: 2013-03-27
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Foreign Direct Investment and Exchange Rate Regimes (2010)
Working Paper: Foreign direct investment and exchange rate regimes (2010)
Working Paper: Foreign direct investment and exchange rate regimes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-12-00771

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