Arbeitspapier

Foreign direct investment and exchange rate regimes

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.

Language
Englisch

Bibliographic citation
Series: HWWI Research Paper ; No. 2-17

Classification
Wirtschaft
International Investment; Long-term Capital Movements
Multinational Firms; International Business
Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
Subject
Foreign Direct Investment
Multinational Enterprises
Exchanges Rate Regimes

Event
Geistige Schöpfung
(who)
Busse, Matthias
Hefeker, Carsten
Nelgen, Signe
Event
Veröffentlichung
(who)
Hamburgisches WeltWirtschaftsInstitut (HWWI)
(where)
Hamburg
(when)
2010

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Busse, Matthias
  • Hefeker, Carsten
  • Nelgen, Signe
  • Hamburgisches WeltWirtschaftsInstitut (HWWI)

Time of origin

  • 2010

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