Exchange Rate Volatility And Foreign Direct Investment: Evidence From East Asian Countries

Foreign direct investment and productivity: evidence from the East Asian economies

In this paper, an examination is made of the linkage between foreign direct investment and productivity in eight East Asian economies–China, Hong Kong SAR, Indonesia, Malaysia, Republic of Korea, Singapore, Taiwan Province of China and Thailand. The Granger causality test and the Toda-Yamamoto version of the Granger causality test are used to test if inflows of foreign direct investment “cause”...

Foreign Direct Investment: Flows, Volatility and Growth in Developing Countries

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using cross-section, panel data and instrumental variable techniques. Whilst all results are not entirely robust, there...

Exchange Rate Volatility and the Timing of Foreign Direct Investment: Market-seeking versus Export-substituting

This paper examines the impact of exchange rate uncertainty on the timing of foreign direct investment (FDI) with heterogeneous investing motives. We first extend DixitPindyck’s real options model to show that while an increase in exchange rate volatility tends to delay the FDI activity of a market-seeking firm, it might accelerate the FDI activity of an export-substituting firm if the firm’s d...

Foreign Direct Investment and Economic Growth: Evidence from Iran and GCC

Abstract F DI can create employment and reduce poverty, increase the host country’s export capacity causing the developing country to increase its foreign exchange earnings. The aim of this study is to investigate whether FDI affect economic growth in GCC countries over the period 1980-2014 using ARDL approaches. The empirical results show that the FDI is one of the major drivers of e...

Openness, Growth, And Development: Evidence From A Panel Of East Asian Countries