Exchange Rate Regime, Real Exchange Rate, Trade Flows and Foreign Direct Investments: The Case of Morocco

Bouoiyour, Jamal; Rey, Serge

doi:10.1111/j.1017-6772.2005.00117.x

Cited by 24 publications

(16 citation statements)

References 39 publications

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“…Many studies have found the exchange rate to impact inwards FDI (Bouoiyour and Rey, ). Kyereboah‐Coleman and Agyire‐Tettey (), Masayuki and Ivohasina () studies show that fluctuations in the exchange rate reduce the inflow of FDI.…”

Section: Literature Reviewmentioning

confidence: 99%

Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources

Anarfo¹,

Agoba²,

Abebreseh³

2017

African Development Review

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This paper examines the role of infrastructural development and natural resources on FDI inflows in Ghana. We examine the empirical relations using the Prais-Winsten regression estimation procedure which is meant to overcome autocorrelation and heteroscedasticity in the error terms in the model, often for regressions applied to series. The data was obtained from World Development Indicators (WDI) spanning from 1975 to 2014. Our findings suggest that infrastructural development and natural resources are drivers of FDI inflows in Ghana. The other variables that significantly influence FDI inflows in Ghana include the lending interest rate, market size and GDP growth rate. The policy implications of this study is that, while Ghana seeks to expand its infrastructure and natural resources to enhance FDI inflows and economic growth, this must be done in tandem with creating an enabling environment to ensure macroeconomic stability.

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Section: Literature Reviewmentioning

confidence: 99%

Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources

Anarfo¹,

Agoba²,

Abebreseh³

2017

African Development Review

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“…A real exchange rate appreciation reflects an increase in the domestic cost of producing tradable goods (relative to the rest of the world), that implies less efficiency in production. This idea was widely presented by Pick and Vollrath (1994), Al-shawarby (1999), Nilsson and Nilsson (2000), Rajan and Sen (2004), Bouoiyour (2005) and Etta-Nkwelle (2007).…”

Section: Literature Reviewmentioning

confidence: 98%

“…Given the importance of the real exchange rate misalignment, a vast range of theoretical and empirical literature was written on the approaches used to estimate the observed real exchange rate and the equilibrium real exchange rate to capture the magnitude of misalignment (Doroodian et al, 2002;Hallett, 2004;Nabli, 2004;Etta-Nkwelle, 2007;Giannellis, 2007;IMF, 2007;Yajie et al, 2007;Quere et al, 2009). Meanwhile, other studies tried to quantify the impact of the misalignments on either trade flows or economic growth, especially for the less developed countries (Cottani et al, 1990;Razin and Collin, 1997;Bouoiyour, 2005;Toulaboe, 2006).…”

Section: Introductionmentioning

confidence: 99%

Real exchange rate assessment in Egypt: Equilibrium and misalignments

Hosni¹,

Rofael²

2015

J. Econ. Int. Finance

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The underlying study focuses on assessing the real exchange rate in Egypt during the period 1999-2012. In particular, the paper estimates the Real Exchange Rate (RER) misalignments in Egypt during the period under investigation. This is implemented through carrying out two main steps: first, the observed real exchange rate is calculated. Then, the Equilibrium Real Exchange Rate (ERER) is estimated using three different techniques from the methodology spectrum of the empirical literature. These methodologies are widely used to estimate the ERER in both developing and developed countries alike; namely, the Purchasing Power Parity (PPP) approach; the Fundamental Equilibrium Exchange Rate (FEER) approach and Edwards Model (1989). Fortunately, the three techniques yield consistent results concerning the undervaluation and overvaluation episodes. Evidently, the REER appears to be misaligned during the period

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“…The regression estimation results are summarized in table 3 Bouoiyour and Rey, 2005). GDP, Exchange rate, Inflation and the constant term were statistically insignificant since their associated t-statistics was less than 2.…”

Section: Regression Model Analysismentioning

confidence: 99%

Impact of Selected Macro Economic Variables on Foreign Direct Investment in Kenya

Kwoba¹

2016

IJEFM

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Foreign direct investment is one of the major sources of external finance for developing countries like Kenya that have a limited amount of capital. Foreign flows into the country so far have been increasing as compared to the previous year's revealing Kenya potential as a business hub for multinational companies to invest in. However, the inability to retain FDI flows into the country has become a major problem and understanding the factors driving FDI inflows into a country and their impact on a country's economic development is of importance. The main objective was to find out the impact of exchange rate, GDP and inflation on FDI in Kenya. Foreign direct investment as a percentage of GDP was the dependent variable while the independent variables were exchange rate, GDP and Inflation rate. The study examined data for 10 years from 2005-2014 for Kenya. To find out the perception of people towards FDI in Kenya primary data was collected from a sample of 271 people. A linear regression analysis was used to determine the relationship between exchange rate, GDP, inflation rate and FDI inflows. Exchange rate, GDP and Inflation rate were found to have a negative insignificant effect on FDI inflows. The study also found out that people in Kenya perceive FDIs as market seeking investments that is they will invest if there is availability of market for the goods and services produced. The study recommends that Policies in relation to formation of regional treaties between Kenya and neighboring countries with an aim of encouraging foreign investment should be made. Security should also be maintained within and around the country and political stability is also crucial in attracting and retaining FDIs. In addition the government should increase its fight against corruption in Kenya so as to increase the foreign investor's confidence in investing in our country.

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Exchange Rate Regime, Real Exchange Rate, Trade Flows and Foreign Direct Investments: The Case of Morocco

Cited by 24 publications

References 39 publications

Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources

Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources

Real exchange rate assessment in Egypt: Equilibrium and misalignments

Impact of Selected Macro Economic Variables on Foreign Direct Investment in Kenya

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