Real exchange-rate uncertainty and US foreign direct investment: an empirical analysis

Schmidt, Christian; Бролл, Удо

doi:10.1007/s10290-009-0024-3

Cited by 43 publications

(23 citation statements)

References 25 publications

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“…9 According to Deichmann (2004), local market-oriented FDI generally prefers host countries with strong currencies. 10 Examples include: Görg and Wakelin (2002); Egger et al (2005); and Schmidt and Broll (2009). 11 Tallman (1988) finds that firms operating in a high-risk environment at home tend to invest more abroad.…”

Section: Explanatory Variablesmentioning

confidence: 99%

The Role of Country-of-Origin Characteristics for Foreign Direct Investment and Technical Cooperation in Post-Reform India

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The decisions of foreign investors on technical cooperation versus equity engagements and on the degree of ownership in FDI projects are likely to depend on their relative bargaining position vis-à-vis the host country. India provides an interesting case for analyzing the interplay between countryof-origin characteristics and host-country characteristics and their respective effects on ownership decisions since opening up its economy to FDI in the early 1990s. We perform negative binominal regressions by making use of a unique dataset on about 24,500 technical cooperation and FDI projects by investors from 45 countries of origin over the 1991-2004 period. We find that relative market size, relative financial market development, relative risk, relative endowment of human capital and previous international experience significantly affect the type of engagement by foreign investors in post-reform India. Terms of use: Documents in

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Section: Explanatory Variablesmentioning

confidence: 99%

The Role of Country-of-Origin Characteristics for Foreign Direct Investment and Technical Cooperation in Post-Reform India

2011

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“…Udomkerdmongkol, Morrissey, and Görg (2009) investigated the effect of exchange rates on US FDI flows to 16 emerging market countries and found that a cheaper currency attracts FDI. Schmidt and Broll (2009) empirically analyzed the impact of exchange rate on US FDI and found that a real appreciation of host country currency (that is a real depreciation of investment country currency) was associated with higher FDI flows. Lee (2015) examined the short-and long-run dynamic relationships between exchange rate level and FDI in Korea and found that a change in exchange rates negatively affects FDI flows in the long run, while in the short run, there is reciprocal feedback between the two variables.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Udomkerdmongkol et al (2009) found that expected devaluation implies that FDI of US is postponed in emerging countries. Schmidt and Broll (2009) empirically analyzed the impact of exchange rate on US FDI and found that expectations about an appreciation show a negative result.…”

Section: Literature Reviewmentioning

confidence: 99%

Exchange Rate Risk, Political Environment and Chinese Outward FDI in Emerging Economies: A Panel Data Analysis

Li¹,

Liu²,

Jin³

2015

JEW

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This study attempts to investigate the effect of financial and political risk on Chinese outward FDI activities in 56 emerging economies for a period from 2003 to 2013. Exchange rate is taken as a main indicator of financial risks and political risks are evaluated using ICRG (International Country Risk Guide) index. Generalized method of moments with panel data of Chinese outward FDI (foreign direct investment) in new emerging economies is used to find how Chinese firms intend to invest abroad with respect to exchange rate level, volatility, and expectation. The major findings show that RMB appreciation proved to have a positive effect on Chinese outward FDI in emerging economies. But Chinese OFDI (outward foreign direct investment) seems not to respond to exchange rate volatility.The expectation of RMB's appreciation has positive effect on Chinese OFDI in emerging economies. Results also show that more political risk leads to more Chinese OFDI in emerging economies.

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“…The volatility of prices and foreign exchange rates may affect employment and the wage process in two ways, first through international trade in goods and services and second through foreign direct investment. 1 The intensified 1 See for example, Krugman (1989), Franke (1991), Schmidt and Broll (2009).…”

Section: Introductionmentioning

confidence: 98%

Exchange rate volatility, international trade and labour demand

Бролл

Hansen-Averlant

2010

Int Econ Econ Policy

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Real exchange-rate uncertainty and US foreign direct investment: an empirical analysis

Cited by 43 publications

References 25 publications

The Role of Country-of-Origin Characteristics for Foreign Direct Investment and Technical Cooperation in Post-Reform India

The Role of Country-of-Origin Characteristics for Foreign Direct Investment and Technical Cooperation in Post-Reform India

Exchange Rate Risk, Political Environment and Chinese Outward FDI in Emerging Economies: A Panel Data Analysis

Exchange rate volatility, international trade and labour demand

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