Arbeitspapier
The Impact of Exchange Rate on FDI and the Interdependence of FDI over Time
The paper examines the impact of exchange rates on foreign direct investment (FDI) inflows into the United States in the context of a model that allows for the interdependence of FDI over time. Interdependence is modeled as a two-state Markov process where the two states can be interpreted as either a favorable or an unfavorable environment for FDI in an industry. Unbalanced industry-level panel data from the US wholesale trade sector are used in the analysis and yield two main results. First, the paper finds evidence that FDI is interdependent over time. Second, under a favorable FDI environment, the exchange rate has a positive and significant effect on the average rate of FDI inflows.
- Language
-
Englisch
- Bibliographic citation
-
Series: ADB Economics Working Paper Series ; No. 164
- Classification
-
Wirtschaft
Innovation and Invention: Processes and Incentives
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Subject
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Basic research
technology creation
technology adoption
economic growth
Wechselkurs
US-Dollar
Auslandsinvestition
Ausländisch
Schätzung
USA
- Event
-
Geistige Schöpfung
- (who)
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Alba, Joseph D.
Park, Donghyun
Wang, Peiming
- Event
-
Veröffentlichung
- (who)
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Asian Development Bank (ADB)
- (where)
-
Manila
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Alba, Joseph D.
- Park, Donghyun
- Wang, Peiming
- Asian Development Bank (ADB)
Time of origin
- 2009
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