New evidence on the link between exchange rates and asset-seeking acquisition FDI

Donghyun Lee

The North American Journal of Economics and Finance, 2013, vol. 24, issue C, 153-158

Abstract: Blonigen (1997) proposes a link between exchange rates and foreign direct investment (FDI) motivated to acquire complementary assets (i.e., asset-seeking acquisition FDI). However, previous studies have only examined this hypothesis with acquisition FDI data from a country source that are mostly U.S. inbound. In this paper I examine the hypothesis using the acquisition FDI data from multiple country sources that are inbound for various countries. I find evidence in support of this hypothesis for U.S. inbound acquisition FDI from multiple country sources, but not inbound acquisition FDI for other various developed countries.

Keywords: Exchange rates; FDI; Mergers and acquisitions (search for similar items in EconPapers)
JEL-codes: F21 F23 F31 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:24:y:2013:i:c:p:153-158

DOI: 10.1016/j.najef.2012.05.001

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