Do exchange rates have any impact upon UK inward foreign direct investment?

Journal article | Zeitschriftenartikel

This paper examines the impact of the level and volatility of the real exchange rate on UK foreign direct investment (FDI) inflows from the seven major countries of origin of the investment over the period 1975 to 2001. We use both fixed effects and dynamic generalised methods of moments (GMM) panel estimation techniques, and manufacturing data disaggregated by high and low R&D content of the sector of destination. Our results provide strong evidence that exchange rate volatility has a negative impact on FDI flows into the UK, irrespective of the sector of destination of the investment. On the other hand, the level of the real exchange rate is found to have a statistically insignificant effect on FDI after controlling for endogeneity of the regressors.

Object Details

• Extent: Seite(n): 2553-2564
• Language: Englisch
• Notes: Status: Postprint; begutachtet (peer reviewed)

References and Relationships

• Bibliographic citation: Applied Economics, 39(20)

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Abbott, Andrew James ; De Vita, Glauco
• Event: Veröffentlichung
• (when): 2008

Further information

• DOI: https://doi.org/10.1080/00036840600749748
• URN: urn:nbn:de:0168-ssoar-240293
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST