Exchange Rate, Exchange Rate Volatility and Foreign Direct Investment

Kozo Kiyota · Shujiro Urata

237 citations0/0 files storedWorld Economy

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

International Business and FDI Monetary Policy and Economic Impact Global Financial Crisis and Policies

Abstract

In the light of the importance of foreign direct investment (FDI) for the promotion of economic development, this paper examines the impact of the changes in the real exchange rate and its volatility on FDI. Examining Japan's FDI by industries, we found that the depreciation of the currency of the host country attracted FDI, while the high volatility of the exchange rate discouraged FDI. Our results suggest the need to avoid over‐valuation of the exchange rate and to maintain stable but flexible exchange rate in order to attract FDI.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 237 citations exist upstream.

References

2003Testing for unit roots in heterogeneous panels 2002Unit root tests in panel data: asymptotic and finite-sample properties 1991Pitfalls and Opportunities: What Macroeconomists Should Know about Unit Roots 1997The Regionalization of the World Economy 1991Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach 1995Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States 1995How Wide is the Border?1985Real Exchange Rate Risk, Expectations, and the Level of Direct Investment

Cited by

2009The effect of exchange rate volatility on international trade in East Asia 2013Determinants of foreign direct investment in OECD member countries 2011Exchange rate movements and foreign direct investment (FDI): Japanese investment in Asia, 1987–2008 2018Investors' perspective on determinants of foreign direct investment in wind and solar energy in developing economies – Review and expert opinions 2007Macro Determinants of FDI Inflows to Japan: An Analysis of Source Country Characteristics

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.